Ujjivan Small Finance Bank raises Rs75 crore via Tier 2 capital; Stock gains 5%

12 Sep 2022 , 12:14 PM

The Committee of Directors of Ujjivan Small Finance Bank Ltd on September 09, 2022 has approved the re-issuance/further issue and allotment of 7,500 (Seven Thousand Five Hundred) subordinated, rated, unlisted, unsecured, transferable, redeemable, fully paid up, non-convertible debentures, denominated in Indian Rupees, having a face value of Rs1,00,000 (Indian Rupees One Lakh) each and an aggregate face value of Rs75,00,00,000 (Indian Rupees Seventy Five Crore), in the form of subordinated debt eligible to be classified as Tier II Capital in accordance with the Reserve Bank of India’s “Master Circular – Prudential Guidelines on Capital Adequacy and Market Discipline-New Capital Adequacy Framework (NCAF)” dated July 1, 2015, on a private placement basis.

Care Ratings Limited on July 04, 2022 has assigned its CARE A+; Stable rating on the Subordinated Non-Convertible Debentures of Rs500 crore (Rupees Five Hundred Crores Only) of the Bank and the same rating has been revalidated by Care Ratings Limited vide its letter dated August 24, 2022.

The Coupon/Interest Offered is 11.95% (eleven decimal nine five percent) per annum (“Interest Rate”), the company informed in a regulatory filing.

At around 12:15 PM, Ujjivan Small Finance Bank was trading at Rs25.25 per share higher by 5.29% on the BSE.

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