Federal Bank on Wednesday said it has received approval from its board of directors to raise up to Rs 700 crore by issuing bonds on a private placement basis.
The board of directors of the bank at its meeting held on Wednesday has approved the issuance of unsecured Basel-III tier-II subordinate bonds in the nature of debentures, amounting up to Rs 700 on a private placement basis, Federal Bank said in a regulatory filing.
The bonds will be allotted to certain eligible investors permitted to invest in NCDs under the applicable laws, it added.
The south-based lender didn’t elaborate on how it will use the proceeds from this fundraise.
Federal Bank stock traded at Rs 98 on BSE, up by 1.55 per cent over previous close.
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