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Monday, February 13, 2012

Lakshmi Vilas Bank Tier II bond issue oversubscribed

http://www.moneyspidery.com/2012/02/14/lakshmi-vilas-bank-tier-ii-bond-issue-oversubscribed/


Coimbatore:    Lakshmi Vilas Bank’s Tier II bond issue, which closed on February 3, is said to have been oversubscribed. The size of the issue was Rs 250 crore.

The Karur-headquartered bank raised the sum through private placement of unsecured redeemable non-convertible subordinated bonds with an option to retain over-subscription. The bonds with a combination of tenures of six years and 10 years offered a coupon rate of 11.4 per cent.

The issue aims to augment the Tier II capital, improve the capital adequacy ratio and enhance the long-term resources of the bank. A K Capital Services was the sole arranger to the issue.

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