AU Small Finance Bank to raise ₹1,500 crore via Tier II Bonds

AU Small Finance Bank Ltd on Friday (March 7) said its board has approved the issuance of unsecured, rated, listed, redeemable, subordinated, non-convertible Lower Tier II Bonds, categorised as Tier II capital, for up to ₹1,500 crore.

The issuance will be conducted via private placement through the Electronic Bidding Platform (EBP) and will be listed on the Wholesale Debt Market segment of BSE Limited.

The bond issuance falls within the overall ₹6,000 crore limit approved by shareholders at the Annual General Meeting held on July 26, 2024. These non-convertible debentures are unsecured, with tenure details to be specified in the General Information Document(s) or Key Information Document(s).

Also Read: RBI grants approval to HDFC Bank to acquire up to 9.50% stake in AU SFB

Additionally, the board has approved the reappointment of Kamlesh Shivji Vikamsey as an Independent Director (Non-Executive) for a second term of five years, effective April 25, 2025, subject to shareholder approval.

The bank confirmed that Vikamsey is not disqualified under the Companies Act, 2013, and is not debarred by SEBI or any other regulatory authority.

Vikamsey joined the bank's board in April 2022. He is a fellow member of the Institute of Chartered Accountants of India and holds a bachelor’s degree in commerce from the University of Mumbai.

Also Read: AU Small Finance Bank aims to maintain credit-deposit ratio within 80-85% range

Vikamsey has worked for 40 years in Auditing, Taxation, Corporate & Personal Advisory Services, Business & Management Consulting Services, Due Diligence & Valuations, Inspections & Investigations and Sustainability. He also held leadership & directorship positions in various Companies/Institutions nationally & globally.

Shares of AU Small Finance Bank Ltd ended at ₹544.05, down by ₹9.10, or 1.65%, on the BSE.