IDBI Bank on Wednesday said it proposes to raise Rs 1,500 crore from bonds to fund growth. “The bank has decided to issue Basel III Compliant Tier 2 Bonds for an aggregate total issue size of Rs 1,500 crore, with a base size of Rs 500 crore and a greenshoe option to retain oversubscription up to Rs 1,000 crore,” IDBI Bank said in a filing.
The bids for the above issuance would be invited on the electronic bidding platform (EBP) of BSE Bond and bidding window shall remain open on January 31, it said. Last month, Parliament approved Rs 9,300 crore capital infusion in IDBI Bank.
The Department of Financial Services got Rs 4,557 crore for infusion into IDBI Bank through recap bonds for its share of 47.11 per cent in IDBI Bank. State-owned LIC, which is the promoter of the debt-ridden lender with 51 per cent stake, will pump in an additional Rs 4,743 crore to improve the bank’s capital position.