Axis Bank sells Rs5,000 crore bonds to EPFO
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Mumbai: Axis Bank on Thursday raised Rs5,000 crore through sale of Basel-III compliant bonds to the Employees’ Provident Fund Organisation (EPFO), said a top executive at the private sector lender.
The bank sold Tier-II bonds maturing in 10 years at a coupon of 7.66%.
“Bank’s capital position is strong but we went ahead with the issuance because the market is very conducive and we could price it at better rate. Yields have fallen because of expectation of a rate cut by the Reserve Bank of India in the coming months. This is the lowest coupon rate so far on the Tier-II bonds of any private sector bank,” said Shashikant Rathi, head of treasury, Axis Bank.
At the end of March 2017, Axis Bank’s capital adequacy ratio was at 14.95%, well above the minimum regulatory requirement of 10.25%.
The bonds are rated AAA.