Axis Bank seek shareholders' nod to raise Rs 35,000 cr

Axis Bank has sought approval of shareholders to raise Rs 35,000 crore through multiple instruments including green bonds and from overseas markets.
The approval would be sought at Axis Bank's 22nd Annual General Meeting of shareholders on July 22.
The bank has sought shareholders' nod through a special resolution to raise these funds.
According to an AGM notice, the bank has sought approval "for borrowing/raising funds in Indian currency/foreign currency by issue of debt instruments...Up to Rs 35,000 crore in domestic and/or overseas market."
The bank said the capital could be raised within a period of 12 months from the passage of the resolution.

Axis Bank said it is open to raise the funds by various instruments including subordinated debt, senior unsecured long term bonds, green bonds, medium term notes and non-convertible debentures.

The funds, which would be within the overall borrowing limits of the bank, will be raised in one or more tranches on a private placement basis.
Axis Bank said it needs the fund to maintain the desired capital to risk weighted assets ratio (CRAR).
The debt instruments would be issued for cash either at par or premium or at a discount to face value depending upon the prevailing market conditions.
Besides, Axis Bank said its Board of Directors has recommended a dividend of Rs 5 per equity share for financial year 2015-16, as compared to Rs 4.60 per equity share for the financial year 2014-15.

"The said increase reflects our confidence in the Bank's ability to consistently grow earnings over time," it added.