Allahabad Bank raises Rs.1050.00 crore through Bond issue

Allahabad Bank on March 25, 2009 successfully completed its Bond issue programme to the extent of Rs. 1050.00 crore. The Bonds includes Rs 500.00 crore of Upper Tier II Bonds (Debt Capital Instruments) (Series I) with a coupon rate of 9.28%, Subordinated Bonds (Tier II Series VIII) of Rs, 400.00 crore with a coupon rate of 9.23% and Perpetual Bond (Innovative Perpetual Debt Instruments) (Series I) of Rs. 150.00 crore with a coupon rate of 9.20%. M/s A.K Capital Services Ltd was the sole arranger for Upper Tier II Bonds (Debt Capital Instruments) (Series I) & Perpetual Bond (Innovative Perpetual Debt Instruments) (Series I) and M/s HSBC was the sole arranger of Subordinated Bonds (Tier II Series VIII).

The Upper Tier II Bonds (Debt Capital Instruments) (Series I) and Perpetual Bond (Innovative Perpetual Debt Instruments) (Series I) were rated as "CARE AA" by CARE and "AA/Stable by CRISIL whereas the Subordinated Bonds (Tier II Series VIII) was rated as "CARE AA+" by CARE and "AA/Stable by CRISIL.

The Bank has raised 1050.00 crore bonds to meet its future business growth.

Kolkata,
Date: 25.03.2009