Cyril Amarchand Mangaldas (CAM) served as legal counsel to The Federal Bank Limited in its inaugural issuance of listed, unsecured, rated, redeemable, taxable, senior, long-term infrastructure bonds. The issuance, structured as non-convertible debentures (NCDs), was valued at Rs 750 crore with a green shoe option to retain oversubscription up to an additional Rs 750 crore, making the total potential issue size Rs 1,500 crore.
This issuance marks a significant milestone for The Federal Bank as the first AA+ rated institution to achieve full subscription for a listed infrastructure bond upon listing. Such a response is typically reserved for AAA-rated issuers, underscoring the market’s confidence in Federal Bank’s financial stability and performance.
CAM’s Role
CAM’s Project & Project Finance team provided comprehensive legal support, including:
The CAM team advising on the transaction was led by Subhojit Sadhu, Partner, with support from Apoorv Jain, Principal Associate; Chahat Gupta, Associate; and Rudraksh Karnik, Associate.
Key Stakeholders
This issuance highlights Federal Bank’s growing stature in the infrastructure financing space and its ability to attract investor interest despite being rated below AAA. The successful subscription reflects robust market demand for high-quality, AA+ rated infrastructure bonds, setting a precedent for other issuers in the category.
The NCDs are a critical step for Federal Bank in diversifying its funding base and supporting long-term infrastructure development projects in India. The success of this maiden issue is expected to further bolster investor confidence in the bank's strategic initiatives and financial acumen.
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