Axis Bank gains on fund raising via infrastructure bond

Axis Bank, India’s third largest private-sector lender has gained over 1% at Rs 505 after the bank on Tuesday said that it has raised Rs 5,705 crore by selling infrastructure bonds. The 10-year senior unsecured redeemable non-convertible debentures (NCDs) were priced at 8.85 per cent a year, payable annually.

The NCDs have been rated AAA by CRISIL and ICRA. The bonds will be allotted to eligible investors on Friday.

The bank plans to use this money to strengthen its long-term resources for financing sectors like infrastructure and affordable housing.

“We are pleased to have received a very good response for the infrastructure bonds from domestic as well as foreign investors. This issue was launched immediately after our recent international bond offering and generated very good response from pension, provident funds, mutual funds, multilateral financial institutions, foreign financial institutions and insurance companies,” Sidharth Rath, president (treasury, business banking and capital markets), Axis Bank, said.The stock opened at Rs 501 and touched a high of Rs 506 on the BSE. At 10:55AM, over 10 lakh shares were traded on both the stock exchanges.

Axis Bank