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India : AXIS BANK to raise Rs 6000 crore via long term bonds.

Country's third largest private sector bank, Axis Bank is to raise money via long term bonds.

According to the bank, the board of directors has approved issuance of long term bonds/non-convertible debentures up to Rs. 6,000 crore on a private placement basis. Now shareholder's approval will be sought for this issue.

Earlier, Axis Bank management had mentioned plans to explore the option of floating long term infrastructure bonds as they look attractive.

The move follows Reserve Bank of India initiative to incentivise banks to raise long term bonds by relaxing the norms.

According to the central bank, long-term bonds (tenor of more than seven years) would be exempted from cash and statutory reserve requirements if incase the proceeds are used to fund new long-term infrastructure projects and affordable housing.

The loans funded through this process will also be exempted from the computation of adjusted net bank credit for the purpose of calculating priority sector lending requirements.

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Publication:Mena Report
Geographic Code:9INDI
Date:Aug 23, 2014
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