National Development Bank (NDB Bank) has announced plans to raise Rs. 8 billion via five-year BASEL II compliant, Tier 2 listed, rated, unsecured, subordinated redeemable debentures with a non-viability conversion.
Initially it is proposed to issue 50 million such debentures at Rs. 100 each and a further 15 million each in the event of oversubscription of original amount as well as a further 15 million upon oversubscription of the earlier amount.
The debenture issue is subject to regulatory and shareholder approval.
NDB last raised Rs. 5.5 billion via a similar debenture in March this year. The original plan was to raise Rs. 6.5 billion. The previous issue offered a fixed rate of 13.5% per annum payable semi-annually and a fixed rate of 13.95% payable annually. It drew 63 applications.
(FT)