In a bid to enhance capital adequacy, IDBI Bank has raised capital of Rs 1,500 crore through Basel III compliant Additional Tier-1 (AT1) bonds. The issue opened and closed on August 30, 2016. This is the first AT1 bond issuance by the Bank during FY 2016-17.
The issue was competitively priced at a coupon of 11.09% payable annually. It would enhance the capital adequacy of the Bank by about 45 basis points. The amount mobilised would be counted as a part of Tier I capital and enhance the capital adequacy of the Bank. The bonds are rated A+ with Negative outlook by ICRA and India Rating.
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