Issue of Basel III Compliant Additional Tier 1 (AT 1) bond by IDBI Bank Ltd.

Mumbai, August 30, 2016: IDBI Bank Limited has issued its second tranche of Basel III compliant Additional Tier 1 (AT1) bonds amounting to `1,500 crore. The issue opened and closed on August 30, 2016. This is the first AT1 bond issuance by the Bank during FY 2016-17.

The issue was competitively priced at a coupon of 11.09% p.a. payable annually. The issue is perpetual in nature with call option after the instrument has run for 5 years and every year thereafter. The amount mobilised would be counted as a part of Tier I capital and enhance the capital adequacy of the Bank. The bonds are rated A+ with Negative outlook by ICRA and India Rating.

Shri Kishor Kharat, Managing Director & CEO, IDBI Bank, while commenting on the bond issuance, stated, “IDBI Bank is one among the most trusted institution in the country and this is reaffirmed by the success of the issue. The issue has been very competitively priced and would enhance the capital adequacy of the Bank by about 45 bps.”

A. K. Capital Services Limited, Axis Bank Limited and Trust Investment Advisors Pvt. Ltd. acted as the Arrangers for this issue.

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सीआइएन / (CIN)L65190MH2004GOI148838