Axis Bank, private sector lender in order to fund its business growth is eyeing to raise Rs 1,500 crore through bonds. The bank will pay a coupon rate of 9.73 percent per annum on the bond having tenure of 10-year. After allotment of the debentures it will be listed on the exchange.
The board has passed a resolution approving allotment of unsecured redeemable non-convertible subordinated debentures on private placement basis as the bank's Lower TIER II capital aggregating to Rs 1,500 crore, including green shoe option of Rs 500 crore.
Recently, the bank was going to concentrate on lending to small industries despite concerns over asset quality coupled with doubtful macroeconomic situation. The bank was expecting to grow 25% each over the next two years in the SME loans.
