Axis Bank raises Rs 5,700 cr through infra bonds Country’s third largest private sector lender, Axis Bank raised Rs. 5,705 crore by issuing long term infrastructure bonds for a 10-year period. The senior unsecured redeemable non-convertible debenture issue was priced at 8.85% p.a. (fixed coupon) payable annually maturing on December 05, 2024. The NCD’s are rated AAA by CRISIL & ICRA. The NCDs shall be allotted to eligible investors on December 05, 2014, Axis Bank said in a statement. It’s the highest amount a bank has raised by selling such bonds, which were issued under the new RBI guidelines for lending to infrastructure and affordable housing projects. Axis Bank had taken approval from its board of directors to raise up to Rs. 6,000 crore by selling such bonds. The bonds opened for subscription on November 20 and closed on Wednesday. Under a similar bond issue, ICICI Bank had raised Rs. 3,900 crore in September by selling 10-year bonds at an annualised yield of 9.25%. With weak credit demand, most banks are waiting for a policy rate cut and sensing the market conditions before raising such bonds so as to get a better pricing. #AxisBank #InfrastructureBonds
Posted on: Fri, 05 Dec 2014 08:00:00 +0000
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