NDB Bank to privately raise Rs. 1 b via debenture

Friday, 25 March 2011 03:50 -     - {{hitsCtrl.values.hits}}

CONFIRMING its aggression, NDB Bank is raising fresh capital worth Rs. 1 billion via debenture issues to be placed privately.

The move was approved by the NDB Bank Board at its meeting yesterday.

Subject to regulatory and shareholder approval, NDB Bank will issue rated subordinated unlisted unsecured redeemable debentures of Rs. 1,000 each for a cumulative value of Rs. 1 billion.

Once through, this will be the second debenture issue of NDB Bank. In December 2007, the bank privately placed debentures having an aggregate face value of Rs. 250 million, which were subsequently listed in December 2007 by way of an introduction.

The proceeds of these debentures were utilised for relending purposes. These debentures were redeemed in November last year.

The current stated capital of NDB Bank is Rs. 1.09 billion.