Axis Bank begins issuing debt as part of Rs 35,000 crore debt increase plan
Axis Bank announced on Monday that it had started issuing debt securities as part of its plan to increase debt to Rs 35,000 crore announced earlier this year. In April, the private sector lender said its board of directors had approved a proposed capital increase up to Rs 35,000 crore by issuing various debt instruments in Indian or foreign currencies in domestic / foreign markets in one or more slices.
The bank’s shareholders approved the proposal at the bank’s annual general meeting in July. “The bank has initiated the process of issuing the debt securities, in the form of additional Tier 1 foreign currency notes (notes), subject to market conditions,” Axis Bank said in a regulatory filing. This will be a lasting bond within the framework of the bank’s sustainable financing.
The issue is part of the bank’s existing Medium Term Note (GMTN) program, he said. The lender said the offer under the GMTN has been communicated to Singapore Exchange Limited (SGX) and the International Securities Market (ISM). “The Notes will not be offered or sold in India under applicable laws,” he added.