IDBI Bank approves issuance of Rs 5,500 cr addt'l tier I bonds

State-owned IDBI Bank has approved issuance of additional tier I bonds up to Rs 5,500 crore to enhance capital.
The bank also approved issuance of Rs 500 crore long term bonds (with equivalent green-shoe option) to support infrastructure and affordable housing.
The decisions were taken at the meeting of Board of Directors held today.
"Issue of Basel III compliant additional Tier I bonds upto the eligible limit as stipulated by RBI, in multiple tranches in INR and/or FC upto a rupee equivalent amount of Rs 5,500 crore to enhance Tier I capital," it said in a filing to the BSE.

"Issue of long term bonds for financing of infrastructure and affordable housing to the extent of Rs 500 crore with green-shoe option of Rs 500 crore," it added.
The state sector lender said the following decisions of the board are subject to government's approval.
Shares of the bank slumped 6.85 per cent at the close to Rs 85 apiece on the BSE today.