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Thursday, February 19, 2015

IndusInd Bank to raise up to Rs. 2,000 cr via infra bonds

IndusInd Bank today announced that it will raise capital to the tune of Rs. 2,000 crore through long-term infrastructure bonds.

The mid-sized private bank informed the BSE: “The bank’s board of directors had, at its meeting held on January 13, 2015 approved the proposal for Issuance of long-term infrastructure bonds, and subordinated non-convertible debentures(NCDs)/bonds eligible to be included as Additional Tier 1 (AT 1) and Tier 2 (T2) capital of the bank up to Rs. 2,000 crore on private placement basis, as permissible under RBI guidelines.”

The approval of shareholders of the bank is proposed to be obtained by way of postal ballot.

In July last year, the Reserve Bank of India had allowed banks to raise long-term infrastructure bonds with a minimum maturity of seven years. "In order to provide liquidity to retail investors in such bonds, it has been decided that banks can extend loans to individuals against long-term bonds issued by them...," RBI said.

The board at the aforesaid meeting appointed Romesh Sobti, Managing Director & CEO, S V Zaregaonkar, Chief Financial Officer, and Haresh Gajwani, Company Secretary, as persons designated for conduct of the entire postal ballot process, the BSE filing said.

It has aso authorised Sobti for finalisation of terms and conditions for issuance of long-term bonds/NCDs to finalise the calendar of events with regards to postal ballot, to appoint various intermediaries, and to sign, execute and enter into agreements with the intermediaries, etc.

Shares of IndusInd Bank were trading at Rs. 854.85 per share, down by Rs. 9.80 (1.13 per cent) on the BSE.

Source : Thehindubusinessline


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