AU Small Finance Bank has raised Tier II capital of Rs 500 crore in the form of Unsecured, Subordinated, Rated, Listed, Redeemable Non-Convertible Bonds through Private Placement basis to further strengthen its Capital Adequacy (CRAR) position.
The aforesaid issue attracted strong interest from diversified base of marquee institutional investor and got fully subscribed for Rs 500 crore including the green shoe option of Rs 200 crore. Subscribers to the issue included some of the largest domestic investors viz. Mutual Funds, Banks, Insurance companies and NBFCs. These Non-Convertible Bonds carry a long term rating of ‘AA-/stable’ from both CRISIL Rating and India Rating & Research and have a fixed maturity tenure of six and half year.
AU Small Finance Bank is a small finance bank (SFB) that has recently transitioned from a prominent, retail focused non-banking finance company (NBFC), which primarily served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels.