AU Small Finance Bank raises Rs 770 Crore via Tier II Bonds Issue, ET BFSI
Jaipur primarily based AU Small Finance Bank on Friday raised Rs 770 crore via the allotment of Unsecured, Rated, Listed, Redeemable, Subordinated, Non-Convertible Lower Tier II Bonds.
The bonds, issued within the nature of Non-Convertible Debentures (NCDs), can be categorised as Tier II capital.
The financial institution allotted 77,000 NCDs, every with a face worth of Rs 1,00,000, via a personal placement by way of the Digital Bidding Platform (EBP). The bonds carry an rate of interest of 9.20 per cent each year and have a tenure of 10 years, maturing on March 28, 2035. The curiosity can be paid yearly on March 28 every year till maturity.
The BSE Wholesale Debt Market section will listing these NCDs, enhancing their tradability. Moreover, AU Small Finance Financial institution has the suitable (however not the duty) to train a name choice after 5 years from the date of allotment.
AU SFB stated that HDFC Bank was the lead supervisor for the problem and was additionally the anchor investor for the deal together with Nippon India Mutual Fund. The issuance noticed sturdy participation from numerous Certified Institutional Consumers (QIBs) together with mutual funds, insurance coverage firms, and pension funds.
The present capital increase is predicted to extend the capital adequacy ratio of the Financial institution by ~1 per cent. Total, the Financial institution stays nicely capitalised and had an total capital adequacy ratio of 19.9 per cent on the finish of Q3’FY25, together with interim earnings for 9M’FY25.
