Axis Bank offers 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 indicated that it plans to raise funds by issuing senior unsecured taxable non-convertible debentures with a value of ??10 lakh each for money at par with a base issue size of ??Option of 2,000 crore and green shoes to keep the oversubscription of ??3,000 crore, totaling up to ??5,000 crores.

Axis Bank’s board of directors had authorized it to borrow / raise funds in Indian currency / foreign currency through the issuance of debt securities, perpetual debt securities, AT 1 bonds, investment bonds. ” infrastructure and Tier II capital bonds, among others, up to an amount of ??35,000 crore in April of this year.

“We now wish to inform you that the bank proposes to raise funds by issuing senior non-convertible redeemable unsecured debentures of ??10 lakh each for money at par with a base issue size of ??Option of 2,000 crore and green shoes to keep the oversubscription of ??3,000 crore, thus aggregating up to ??5,000 crore, ”Axis Bank said in a regulatory filing.

He stated that “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 the issuance of debt instruments, including but not limited to long-term bonds, non-convertible debentures, perpetual debt securities, AT 1 bonds, infrastructure bonds and Tier II capital bonds or any other debt security authorized under guidelines issued by the Reserve Bank of India from time to time up to an amount of Rs. 35,000 crore (Rupees thirty-five thousand crore only) in domestic and foreign markets, in one or more tranches under section 42 of the Companies Act 2013 read with the relevant rules notified thereunder, Securities and Exchange Board of India (issuance and listing of debt securities), 2008 [now Securities and Exchange Board of India (Issue and Listing of Non-convertible Securities) Regulations, 2021] and the Listing Rules, 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 would not partner with peers seeking an extension of deadlines to meet the financial parameters of the Kamath Committee recast loans due to the stress of the pandemic.

His (appointed) deputy managing director Rajiv Anand also made it clear that there is currently no conversation around a deal with Spandana Sphoorty, denying reports that the third largest lender is interested in buying the microlender.

“I think there is currently a conversation between some banks with the RBI to extend the Kamath committee (for corporate loan restructuring) timelines. We don’t see a need to do that at this time,” said Anand. told reporters here.

Axis Bank shares traded at ??663.25 coin on BSE, down 3.74% from the previous close.

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