IDBI Bank raises Rs 1,500 crore through AT1 bonds

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.

IDBI Bank is the youngest, new generation public sector universal bank that rides on a cutting edge Core Banking platform with strong service orientation.