New Delhi, Jun 27 (PTI) IDFC First Bank on Tuesday announced raising of Rs 1,500 crore from Tier-2 bonds to fund business growth.

These privately placed bonds are issued as unsecured, subordinated, rated, listed, non-convertible, fully paid-up, taxable, redeemable Basel III compliant tier-2 Bonds (in nature of debentures) at a face value of Rs 1 crore each, the bank said in a statement.

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These bonds were raised through private placement on the NSE e-bidding platform, it said, adding, the participation for the issuance came from domestic Qualified Institutional Investors.

The bidding on NSE e-bidding platform interest from corporates, public pension funds, provident funds, and insurance companies, and the overall issue was oversubscribed, it said.

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The unsecured Tier 2 Bonds were raised for a tenor of 10 years with a call option at the end of five years and carry a coupon of 8.40 per cent, it added.

Following the bond raise, the capital adequacy ratio of the bank increase to 17.68 per cent providing greater headroom for growth of the lender.

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