New Delhi: Private sector lender Axis Bank has raised Rs3,500 crore by issuing debt securities on a private placement basis.

The board of directors of the bank today approved and allotted 35,000 unsecured subordinated perpetual additional tier-I Basel III compliant non-convertible debentures aggregating Rs3,500 crore on a private placement basis, it said in a regulatory filing.

The bank said the fund raised will augment its tier-I capital base. The perpetual bonds, which can also be converted to equity if required, have a five-year call and carry a coupon rate of 8.75%.

“These debentures will strengthen the overall capital adequacy ratio of the bank by an estimated 74 basis points (0.74 percentage) and also enhance the long term resources," it added.

The bonds are rated stable by Crisil, ICRA and India Ratings. Stock of Axis Bank today closed 0.34% up at Rs494.50 on BSE.