Federal Bank board to consider fundraising via issue of preference shares to IFC on July 21

livemint.com:

Federal Bank board of directors will consider fundraising and share allotment to International Finance Corporation (IFC) on July 21. In a regulatory filing on Wednesday, the lender informed that a meeting of its Board of Directors will be held on Friday, July 21, 2023, to consider, issuance of equity shares by way of a preferential allotment, to International Finance Corporation (IFC), IFC Financial Institutions Growth Fund, LP, and IFC Emerging Asia Fund, LP for subscribing up to 72,682,048 equity shares of the bank at a price not exceeding ₹131.91 per equity share.  “Upon consummation of the transaction, the investors shall in aggregate hold up to 177,528,442 equity shares of the Bank," it said.

The board will also consider borrowing or raising of funds in Indian Currency or any other permitted foreign currency by way of issue debt instruments including Additional Tier I bonds (AT1 bonds), Tier II bonds, Long Term Bonds (Infrastructure & Affordable Housing), Masala Bonds and bonds issued for Environmental Social Governance funding (ESG bonds) in domestic market and/or overseas market, on a private placement basis within the overall borrowing limits of the Bank. Also Read: IndusInd Bank share price hits 52-week high on strong Q1 results; Should you buy? Here’s what brokerages say Meanwhile, Fedbank Financial Services Ltd (FedFina), the non-banking financial arm of Federal Bank, has revived plans of raising funds through an initial public offering (IPO).  In a BSE filing on Monday (July 17), Federal Bank announced that the board of directors of FedFina proposed an initial public offering at its meeting held on July 17, 2023.