The debenture with a maturity period of 7 years will yield 10.5 percent interest rate payable semi-annually.
The debenture has certain advantages over ordinary shares including constant market price, sure shot interest earning of 10.5 percent, eligible for securities-based lending and sellable in the securities market when needed.
The bank is issuing 2 million units of debentures at a face value of Rs 1,000. Out of the total offered debentures, the bank will issue 40 percent i.e. 800,000 units to the public while 60 percent i.e. 1,200,000 units will be privately financed.
The bank has appointed Siddhartha Capital as its issue manager. The interested investors can apply for a minimum of 25 to maximum of 100,000 units of shares. The issue will close on June 11 to July 7.
