IDBI Bank plans to raise up to Rs 3,000 crore through AT1 bonds

The private sector lender will also raise up to Rs 1,000 crore via infrastructure bonds to fund projects and affordable housing.

Private sector lender IDBI Bank plans to raise capital up to Rs 3,000 crore through additional tier I (AT-1) bonds in 2022-23 (FY23) to meet regulatory norms and business growth. It will also raise up to Rs 1,000 crore via infrastructure bonds to fund projects and affordable housing.
 

The board of directors approved the rupee bond borrowing limit of Rs 8,000 crore for FY23 to be borrowed in one or more tranches. This would include AT-1 bonds up to Rs 3,000 crore and senior/infrastructure bonds up to Rs 1,000 crore to be issued through private placement during FY23, the bank informed BSE.
 

Its capital adequacy ratio stood  at 16.75 per cent with tier I of 14.13 per cent at the end of December 2021. The lender is up for strategic divestment along with transfer of management control by government of India and Life Insurance Corporation of India in FY23. Road shows are currently being held to assess the investor interest before floating an expression of interest.
 

Karnataka Bank raises Rs 300 crore

Karnataka Bank raised about Rs 300 crore in capital through tier II bonds at a coupon of 10.70 per cent. These bonds carry “A” rating from CARE.
 

On March 30, Indian Overseas Bank is planning to raise up to Rs 800 crore through tier II bonds to meet regulatory norms and business needs. The issue size is Rs 200 crore with green shoe option for Rs 600 crore, bond market dealers said.