AK Capital raises Rs 200 crore Tier-II bonds for Federal Bank

Mumbai, Dec 18 (UNI) AK Capital Services has successfully raised Rs 200 crore Unsecured Redeemable Non-Convertible Subordinated Tier-II Bonds for The Federal Bank Ltd through private placement route.

Informing the BSE, the company said the 10 Year Subordinated Bonds rated ''CARE AA'' by CARE and ''A+(ind)'' by FITCH have been raised at a competitive coupon rate of 9.25 per cent per annum payable semi-annually.

The issue was successfully syndicated by the Company as Lead Arranger well within the specified time schedule despite volatile market conditions due to announcement of hike in CRR (Cash Reserve Ratio) by the Reserve Bank of India (RBI) on December 08, 2006 by 50 basis points.

UNI SN SD AG1803