Axis Bank raises Rs 1,500 cr, South Indian Bank Rs 300 cr via bonds

Axis Bank has raised Rs 1,500 crore through Basel complaint tier-II debentures while The South Indian Bank issued tier-II bonds worth Rs 300 crore.

The private sector bank on Wednesday said the Board of Directors allotted these non-convertible subordinated debentures on private placement.

"...allotted 15,000 unsecured redeemable non-convertible subordinated debentures (Basel-III Compliant Tier II debentures) of face value Rs 10 lakh each for cash at par aggregating to Rs 1,500 crore on a private placement basis," Axis Bank said in a filing on Bombay Stock Exchange (BSE). It added that the debentures will be listed on the Wholesale Debt Market segment of the BSE and National Stock Exchange (NSE).

The debentures are rated 'AAA' by CRISIL, CARE and ICRA, the bank added.

In a separate filing, The South Indian Bank said it has allotted 3,000 non-convertible, redeemable, unsecured, Basel III compliant Tier 2 bonds aggregating up to Rs 300 crore.

The bank said it will be for inclusion in tier-II capital of the bank in the nature of debentures of face value Rs 10 lakh each with interest of 10.25 per cent per annum for a period of 121 months.

Shares of Axis Bank closed at Rs 495.55 apiece on BSE, down 1.68 per cent and The South Indian Bank at Rs 22.65, down 0.88 per cent.