New Issue: India's Indus Bank sells Rs 1.7 billion of tier II bonds

By Reshmi Basu

New York, April 20 - Indus Bank Ltd. said it issued Rs 1.7 billion of tier II bonds in three tranches through a private placement.

The issue was structured as unsecured redeemable non-convertible subordinated bonds.

Two tranches carried a 63- month tenor with the first tranche bearing a coupon of 8.1% while the second tranche pay interest at 190 basis points over the one-year INBMK benchmark rate.

The third tranche carried a 111-month tenor and bears a coupon of 8½%.

Proceeds will be used to augment the bank's capital for further asset expansion and implementation of Basel II norms.

The new issue is listed on the wholesale debt market segment of the National Stock Exchange of India and is rated A+ by Fitch and A+ by ICRA, a ratings agency in India.

AK Capital Services Ltd. acted as the sole arranger.

"This will help us in maintaining our CAR at adequate levels in a Basel II scenario," said Bhaskar Ghose, managing director and chief executive officer, in a new release.

"Even after this issue, we still have scope to raise more tier II funds. We will explore that option as and when we need further capital."

Indus, based in Mumbai, is a private sector bank.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.