Saraf and Partners acted as sole deal counsel for Federal Bank Limited as the Issuer, SBI Capital Markets Limited as the Arranger and IDBI Trusteeship Services Limited as the Debenture Trustee on all aspects of the deal including structuring of the deal as well as the drafting, negotiation and finalization of the transaction documentation.
Federal Bank Limited has issued eligible Tier 2 capital in compliance of RBI Guidelines in the nature of rated, fully paid, taxable, redeemable, subordinated, unsecured, non-convertible debentures up to 500 (Five Hundred) of face value of Rs. 1,00,00,000/- (Rupees One Crore only) each for cash, at par aggregating to Rs. 500,00,00,000/- (Rupees Five Hundred Crores) plus green shoe option up to 500 (Five Hundred) eligible Tier 2 capital in compliance of Basel III Guidelines in the nature of rated, fully paid, taxable, redeemable, subordinated, unsecured, non-convertible debentures of face value of Rs. 1,00,00,000/- (Rupees One Crore) each for cash, at par aggregating to Rs. 500,00,00,000/- (Rupees Five Hundred Crores), in total aggregating to Rs. 1000,00,00,000/- (Rupees One Thousand Crores only) (USD 123 million) on private placement basis.
This issuance will strengthen the capital adequacy and enhance the long term resources for Federal Bank Limited and help it to further grow its customers base across India, in both urban and rural areas.
Abir Lal Dey (Partner) led the transaction team, ably assisted by Nishal Makharia (Associate).