Axis Bank proposes to raise up to ₹5,000 crore by issuing bonds
Premium- Axis Bank on Monday announced its proposal to raise up to ₹5,000 crore by issuing bonds
Private lender Axis Bank on Monday announced its proposal to raise up to ₹5,000 crore by issuing bonds. In its regulatory filing the bank notified that it proposes to raise funds by issuing senior unsecured taxable redeemable non- convertible debentures worth ₹10 lakh each for cash at par with base issue size of ₹2,000 crore and green-shoe option to retain over-subscription of ₹3,000 crore, aggregating up to ₹5,000 crore.
The board of directors of Axis Bank had authorised it to borrow/raise funds in Indian currency/foreign currency by issue of debt instruments, perpetual debt instruments, AT 1 bonds, infrastructure bonds and Tier II capital bonds among others up to an amount of ₹35,000 crore in April this year.
"We now wish to inform you that the bank proposes to raise funds by issuing senior unsecured taxable redeemable non- convertible debentures of ₹10 lakh each for cash at par with base issue size of ₹2,000 crore and green-shoe option to retain over-subscription of ₹3,000 crore thereby aggregating up to ₹5,000 crore," Axis Bank said in a regulatory filing.
It said, “the Board of Directors of Axis Bank Limited (the “Bank") at its meeting held on April 27, 2021, had authorized the Bank to borrow/raise funds in Indian currency/ foreign currency by issue of debt Instruments including but not limited to long term bonds, non-convertible debentures, perpetual debt instruments, AT 1 bonds, infrastructure bonds and Tier II capital bonds or such other debt securities as may be permitted under the guidelines issued by the Reserve Bank of India, from time to time, up to an amount of Rs. 35,000 crores (Rupees Thirty Five Thousand crores only) in domestic and overseas markets, in one or more tranches in terms of Section 42 of the Companies Act, 2013 read with relevant rules notified thereunder, the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 [now Securities and Exchange Board of India (Issue and Listing of Non-convertible Securities) Regulations, 2021] and the Listing Regulations, subject to the approval of the Shareholders of the Bank at the 27th Annual General Meeting of the Bank (“AGM")."
Meanwhile, just last week the bank said it will not be joining force with peers seeking an extension of timelines for meeting financial parameters on loans recast under the Kamath committee framework because of the pandemic-related stress.
Its deputy managing director (designate) Rajiv Anand also made it clear that there are no conversations around a deal with Spandana Sphoorty at present, denying reports of the third-largest lender being interested to buy the microlender.
"I think there is some conversation that is going on currently among some of the banks with RBI to extend the Kamath Committee timelines (for restructuring of corporate loans). We are not seeing any need to do that at this point of time," Anand told reporters here.
Stock of Axis Bank traded at ₹663.25 a piece on the BSE, down by 3.74% from previous close.
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