Ujjivan Small Finance Bank Raises Rs 75 Million Through Tier 2 Capital; Stocks gain 5%

The Board of Directors of Ujjivan Small Finance Bank Ltd on September 9, 2022 approved the reissue/reissue and allotment of 7,500 (seven thousand five hundred) subordinated, rated, unlisted, unsecured, transferable, redeemable, fully paid, non-convertible debentures, denominated in Indian Rupees, with a face value of Rs1,00,000 (Indian Rupees One Lakh) each and a total face value of Rs75,00,00,000 (Indian Rupees Seventy Five Crore) , in the form of subordinated debt eligible to be classified as Tier II capital in accordance with the “Master Circular – Prudential Guidelines on Capital Adequacy and Market Discipline-New Capital Adequacy Framework (NCAF)” of the Reserve Bank of India dated July 1, 2015, on the basis of a private placement.

Care Ratings Limited on July 04, 2022 awarded its CARE A+; Stable rating on the Bank’s Rs500 crore (Rupees Five Hundred Crores Only) non-convertible subordinated debentures and the same rating has been revalidated by Care Ratings Limited in its letter dated 24 August 2022.

The coupon/interest offered is 11.95% (eleven point nine five percent) per annum (“interest rate”), the company advised in a regulatory filing.

At around 12:15 p.m., Ujjivan Small Finance Bank was trading at 25.25 rupees per share up 5.29% on BSE.

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Sallie R. Loera