Axis closes Rs2,000-crore bond ahead of scheduled date

16 June 2009

Axis Bank, India's third-largest bank in the private sector, has decided to close its Rs2,000-crore lower Tier-2 bond issue yeterday, two days ahead of the earlier scheduled closing date 17 June.

In a notice to the stock exchanges, the bank said as per the terms of issue, it was within its rights to change the issue closing date and the date of allotment at its discretion. The bank also advanced the date of allotment to 16 June from 19 June.

The 10-year bonds carry a coupon rate of 9.15 per cent according the notice.

Meanwhile, Union Bank of India (UBI), the country's sixth-largest lender today said it had raised additional capital of Rs200 crore through issue of subordinated perpetual bonds, in its filing to the BSE.

The issue opened 8 June and closed 13 June. The bonds which carry a coupon rate of 8.85 per cent per annum payable annually are rated as 'BWR AAA' by rating agency Brickwork. Crisil has rated the bonds 'AA+/Stable'.
The bank, in a filing, said the allotment would be completed on 16 June.

Axis Bank, spun out of the public sector financial giant, UTI, functioned as UTI Bank when it started operations in 1994, before adopting the new name last year (See: UTI Bank to change name to Axis Bank)