Federal Bank’s ₹6,000 Cr Debt Raise: AT1, Green, Infra & Masala Bonds Approved

Board Greenlights ₹6,000 Cr Fundraise Federal Bank’s board has approved raising up to ₹6,000 crore through a mix of equity and debt instruments, subject to shareholder and regulatory approvals. The debt-side authorization allows issuance of: Additional Tier I bonds Tier II bonds Long-term infrastructure and affordable-housing bonds Masala bonds Green bonds Non-convertible debentures (NCDs) These bonds may be placed privately in domestic and overseas markets within the bank’s overall borrowing limits. Maiden Infrastructure Bond Issue: ₹1,500 Cr In November 2024, Federal Bank successfully raised ₹1,500 crore via its first 10-year infrastructure bond on a private placement basis. The issuance comprised: Base issue of ₹750 crore Greenshoe option of ₹750 crore Coupon rate of 7.76% per annum Proceeds will fund long-term infrastructure projects, supporting India’s development agenda. Q4 FY25 Financial Context Net profit rose 13.7% YoY to ₹1,030.2 crore Net interest income (NII) came in at ₹2,377.4 crore (up 8.3% YoY) Net interest margin (NIM) improved to 3.12% Gross NPA ratio eased to 1.84%; net NPA to 0.44% Strong earnings underpin the bank’s capital-raising plans and reinforce investor confidence ahead of bond issuances.