The Board of Directors of Federal Bank has approved a significant fundraising initiative. The bank plans to raise up to ₹10,000 Crores through the issuance of various debt instruments. This includes AT1 bonds, Tier II bonds, long-term bonds, Masala Bonds, Green Bonds, and non-convertible debentures. The fundraising will occur in the domestic and/or overseas markets on a private placement basis, subject to necessary approvals.
Federal Bank Board Authorizes Major Fundraising Initiative
At its adjourned meeting held on Friday, July 17, 2026, the Board of Directors of Federal Bank has passed a pivotal resolution to raise substantial capital. The bank is set to borrow or raise funds amounting to up to ₹10,000 Crores (Rupees Ten Thousand Crores only).
Diverse Debt Instruments to be Utilized
The funds will be raised through the issuance of a broad range of debt instruments. These include, but are not limited to, Additional Tier I (AT1) bonds, Tier II bonds, long-term bonds specifically for infrastructure and affordable housing projects, Masala Bonds, Green Bonds, and non-convertible debentures. The bank may also issue such other debt securities as permitted by the Reserve Bank of India (RBI) from time to time.
Market Scope and Approvals
This fundraising exercise will be conducted in the domestic market and/or overseas market. The issuance will be on a private placement basis. The aggregate amount raised will be within the overall borrowing limits of the Bank. This decision is subject to the necessary shareholders’ approval, where applicable, and all other required regulatory and statutory approvals and requirements.
Source: BSE
