Utkarsh Small Finance Bank has successfully allotted 30,000 Rated, Listed, Unsecured, Subordinated, Redeemable, Lower Tier II Bonds in the form of Non-Convertible Debentures, according to reports from Business Standard. The bonds carry a face value of ₹1 lakh each and have been allotted at a coupon rate of 11.75% per annum, payable quarterly on a private placement basis. The allotment was approved by the Capital Structuring & Fund Raise Committee under the authority granted by the Board of Directors, with the NCDs proposed to be listed on the Wholesale Debt Market segment of BSE Limited.
The total fund raised through this NCD issuance amounts to ₹300 crore, as reported by Business Standard. The bonds are classified as Lower Tier II Bonds and have been structured as Redeemable Non-Convertible Debentures, providing the bank with long-term funding at a competitive interest rate. The securities carry a tenure of seven years from the date of allotment, qualifying as Tier II capital for regulatory purposes.
The NCDs have been structured as Unsecured, Subordinated, Redeemable, Lower Tier II Bonds with a face value of ₹1 lakh each, as reported by Business Standard. The bonds are Rated, Listed, and Redeemable in nature, providing the bank with access to listed debt markets for long-term funding requirements. The instrument is unsecured, meaning no charge or security is created over the assets of the bank, with no special rights or privileges attached beyond standard redemption terms.
The coupon rate of 11.75% per annum is payable quarterly on the NCDs, according to Business Standard. The bonds have been allotted on a private placement basis, indicating the bank's approach to raising capital through structured debt instruments in the current market environment. This action complies with Regulations 30 and 51 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
