India New Issue-IDFC First Bank likely to issue Tier-II bonds next month - bankers

IDFC First Bank

27/10/2023 09:32

By Dharamraj Dhutia and Bhakti Tambe
       MUMBAI, Oct 27 (Reuters) - India's IDFC First Bank
 IDFB.NS  plans to raise up to 30 billion rupees ($360.5
million) by selling Basel III-compliant, Tier-II bonds maturing
in 10 years, three merchant bankers said on Friday.
    The private bank is expected to come up with bidding for the
issue in November, which would mark its second such fundraising
in under six months, the bankers said.
    The bonds are rated AA+ by Crisil and could have a put/call
option at the end of five years.
    "The put/call option makes the investment more attractive,
so the lender may prefer it like its previous issue," one of the
bankers said.
    In June, IDFC raised 15 billion rupees selling Tier-II bonds
at an annual coupon of 8.40%, with a put/call option at the end
of five years and every year thereafter.
    The lender did not immediately reply to an email seeking
comment.
    The issuance comes at a time when State Bank of India
 SBI.NS , the country's largest lender, is likely to raise up to
100 billion rupees through Tier-II bonds maturing in 15 years.
 
 ($1 = 83.2264 Indian rupees)

 (Reporting by Dharamraj Dhutia and Bhakti Tambe; Editing by
Savio D'Souza)
 ((Dharamraj.dhutia@tr.com))