Mumbi - IDFC First Bank announced on Tuesday that it raised Rs 1,500 crore through a private placement (PP) of Tier-2 notes. The lender issued 'Unsecured, Subordinated, Rated, Listed, Non-Convertible, Fully Paid-Up, Taxable, Redeemable Basel III Compliant Tier 2 Bonds' with a face value of Rs 1 crore each, which will be redeemed in accordance with the terms of issue on the bonds' original maturity of 10 years, according to the lender.
However, the lender may exercise a "call option" after five years from "the date of allotment and annually afterwards, subject to compliance with relevant regulatory conditions."
It said marquee domestic investors participated in the subscription, including Life Insurance Corporation of India, which subscribed to more than 60% of the issue size.
"The initial issuance size was Rs 1,000 crore, with a Green Shoe Option to retain up to Rs 500 crore in oversubscription. I'm pleased to report that the issuance was fully subscribed by prominent domestic investors... this demonstrates the market's significant interest in our paper "Sudhanshu Jain, CFO and Corporate Centre Head, stated.
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