RBL Bank said it raised $100 million through its first issuance of Base III-complaint unsecured and subordinated tier 2 bonds. The tier 2 bond issuance has increased the total Capital Adequacy Ratio of the bank to 17.85 percent.
The RBL Bank said in a statement that the bonds with a tenor of 117 months were issued to the United States International Development Finance Corporation, America’s development finance institution. This is the first investment of DFC in Basel III compliant tier 2 bonds in India.
The bank said that the investment will improve its capital position as it aims to continue expanding its geographical presence and expansion in its chosen business.
DFC provides equity investment, investment funds, debt financing, feasibility studies, political risk insurance, and technical assistance. DFC investments strictly adhere to high standards and respect human rights and worker rights.
