Axis bank: Axis Bank plans to raise up to Rs12,000 cr via Tier II bonds – Heemang Parmar

BENGALURU: Axis Bank, India’s third-largest private lender, said on Wednesday it was planning to raise up to Rs 12,000 crore ($1.46 billion) through the sale of Basel III compliant Tier II bonds.

The fund raise will include a base issue of up to 1,000 bonds, aggregating to Rs 1000 crore , with a green-shoe option to retain oversubscription of up to 11,000 bonds, aggregating to Rs 11,000 crore, the company said in an exchange filing.

Last month,
Reuters reported that Axis Bank would focus on offering loans with a shorter term, as it moves away from riskier longer-term infrastructure-related ones.

“Within the corporate side, we were more infrastructure, longer term-loan focused earlier. We are now moving to be more working capital or shorter term-loan focused to reduce risk,” Rajiv Anand, deputy managing director of

, said in an interview to Reuters on November 18.

Analysts said in September that Indian banks might continue their fundraising spree over the next few months by issuing securities, including infrastructure bonds, as they rush to meet rising credit demand and lock in funds at cheaper rates.