Cheni, Jan 4: IDBI Bank Ltd on Monday said it has raised Rs.900 crore by privately placing Basel III compliant tier 2 bonds with a tenure of 10 years. This is in addition to Rs.1,000 crore raised on December 31, 2015 through the issue of similar bonds to Employees’Provident Fund Organisation (EPFO) but with 15 years tenure from the date of deemed allotment.
The bonds under both the issues bear a coupon rate of 8.62 percent and the funds are raised to strengthen the bank’s capital adequacy. According to the bank, the central government has approved it to raise capital to the tune of Rs.3,771 crore through qualified institutiol placement (QIP) at an appropriate time. (IANS)