IDBI Bank raises Rs 1,000 cr via bonds

Public sector IDBI Bank has mopped up Rs 1,000 crore through private placement of Basel-III compliant bonds.
The bank will use the funds raised to strengthen its capital adequacy.
"IDBI Bank has mobilised Rs 1,000 crore today through issue of Basel III compliant additional tier-I bonds on private placement basis to strengthen the bank's capital adequacy," it said in a regulatory filing.
The 'IDBI Omni Additional Tier I Bond 2016-17 Series II' are unsecured, non-convertible perpetual bonds which will qualify as additional Tier-I capital.
The bonds are listed A+/Negative by ICRA and India Ratings.
The issue size was of Rs 500 crore with an option to retain over-subscription of up to Rs 500 crore.

The bonds will yield returns of 10.95 per cent per annum.
IDBI Bank stock closed 2.94 per cent down at Rs 74.30 on BSE today.