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Source Name: IDBI Bank

IDBI Additional Tier - I (AT - I) Bonds Oversubscribed

Oct 20, 2014   15:10 IST 
Mumbai, Maharashtra, India

IDBI Bank’s first Basel III compliant Additional Tier – I (AT - I) bonds amounting to Rs. 2,500 crore (Rs. 1,500 crore with an option to retain over-subscription upto Rs. 1,000 crore) received an overwhelming response and has been fully subscribed prior to the closure date. The issue opened on September 29, 2014.


This is the first AT - I bond issuance by a bank in India after RBI modified its Basel III guidelines vide its circular dated September 1, 2014.


The issue was competitively priced at a coupon of 10.75% p.a. payable annually. The issue is perpetual in nature with call option after the instrument has run for 10 years. 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 AA- by CRISIL and India Rating.


Shri M. S. Raghavan, Chairman & Managing Director, IDBI Bank while commenting on the bond issuance, stated, "IDBI Bank is one of the best known names and has been a pioneer in various initiatives in the banking industry. The resounding success of this bond issue is testimony to this fact. This issuance will pave way for other banks to issue Tier I Bonds in the domestic market and will increase the acceptance of this instrument among the investors.


Axis Bank Ltd., Darashaw & Co. Pvt. Ltd., ICICI Bank Ltd., Trust Investment Advisors Pvt. Ltd. and IDBI Capital Market Services Ltd. acted as the Arrangers to this issue.

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