South Indian Bank to raise Rs 500 cr from bonds

New Delhi: South Indian Bank on Monday said it is planning to raise Rs 500 crore from bonds to fund business expansion.

An amount of Rs 300 crore will be raised through Basel III compliant tier 1 bonds with a Rs 200 crore green-shoe option.

“Capital planning and infusion committee of directors of the bank today approved the information memorandum for issuance of rated, unsecured, perpetual, non-convertible, Basel III Compliant, Tier 1 Subordinated Bonds in the nature of debentures (NCDs) bearing a face value of Rs 1 lakh only with a base issue size of Rs 300 crore,” South Indian Bank said in a regulatory filing.

It will have a green-shoe option to retain oversubscription up to Rs 200 crore aggregating to Rs 500 crore, it said.