AU Small Finance Bank’s board has approved the allotment of 500 Tier II Bonds of face value of Rs 1 crore each, for cash, at par aggregating to Rs 500 crore at a coupon rate of 9.30% p.a. on a private placement basis. The said Tier II Bonds are rated ‘AA/Stable’ by CRISIL Ratings and CARE Ratings and shall be listed on Wholesale Debt market segment of BSE. The Board of Directors of the Bank vide resolution passed on August 3, 2022 approved the allotment of the same.
AU Small Finance Bank is a small finance bank (SFB) that has recently transitioned from a prominent, retail focused nonbanking finance company (NBFC), which primarily served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels.
