Private sector lender IndusInd Bank will issue long-term infrastructure bonds or non-convertible debentures on private placement basis to raise about Rs 2,000 crore.
"The board of directors approved the proposal of borrowings/raising funds in Indian currency by issue of long-term infrastructure bonds/subordinated non-convertible debentures in domestic market, on private placement basis, in one or more tranches, for an amount not exceeding Rs 2,000 crore," the bank said in a filing to the BSE.
The proceeds will be used to finance bank's incremental lending for infrastructure and affordable housing, it said.
The debt raised, to be added both as tier-I and tier-II capital, by the bank has a maturity period of seven years.
These bonds may carry a coupon at a fixed rate or at a floating rate, it added.
IndusInd Bank scrip closed at Rs 856.15 apiece on BSE, down 0.89% over previous close.
