DCB Bank raises Rs 1.5 billion via bonds on private placement basis

These bonds carry an interest rate of 9.85% per annum for a period of 10 years from Jan 12, 2018

Private sector lender DCB Bank on Monday said it has raised Rs 1.5 billion (Rs 150 crore) through issuance of bonds on a private placement basis.

The bank in a regulatory filing said that the capital raising committee of its board of directors issued and "allotted 15,000 non-convertible, redeemable, unsecured, Basel-III compliant tier 2 bonds, for inclusion in tier 2 capital of the bank in the nature of debentures of the face value of Rs 100,000 each at par aggregating to Rs 1.5 billion (Rs 150 crore) on private placement basis".

These bonds carry an interest rate of 9.85 per cent per annum for a period of ten years from January 12, 2018.

Shares of DCB Bank were trading 0.12 per cent lower at Rs 200.70 on BSE.