RBL Bank raises USD 100 mn from bonds

NEW DELHI: RBL Bank on Tuesday said it has raised USD 100 million (about Rs 770 crore) through its first issuance of Basel III-compliant unsecured and subordinated tier 2 bonds.

The tier 2 bond issuance increases the bank’s total Capital Adequacy Ratio to 17.85 per cent, RBL Bank said in a statement.

The bonds with a tenor of 117 months were issued to United States International Development Finance Corporation (DFC), America’s development finance institution, it said.

DFC provides debt financing, equity investments, feasibility studies, investment funds, political risk insurance and technical assistance.

The investment will augment the bank's capital position as it seeks to continue expanding geographic footprint and expansion in its chosen businesses, it said.

DFC investments adhere to high standards and respect the environment, human rights and worker rights. This is DFC’s first investment in Basel III compliant tier 2 bonds in India, it said.