Cyril Amarchand Mangaldas Advised Federal Bank On ₹1,500 Cr Infra Bond Issuance

Cyril Amarchand Mangaldas Advised Federal Bank on ₹1,500 Cr Infra Bond Issuance

Cyril Amarchand Mangaldas (CAM) advised The Federal Bank Limited (Issuer) in relation to the issuance of listed, unsecured, rated, redeemable, taxable, senior, long-term infrastructure bonds in the form of non-convertible debentures aggregating to an amount of up to INR 750,00,00,000 (Indian Rupees Seven Hundred and Fifty Crore Only) (Base Issue), with a green shoe option to retain over-subscription of an additional amount of up to INR 750,00,00,000 (Indian Rupees Seven Hundred and Fifty Crore Only) (Green Shoe Option) by way of private placement (Debentures) by the Issuer.

It was the maiden listed infrastructure bond issuance by an AA+ rated institution that was fully subscribed to upon listing. While we usually see AAA and above-rated institutions and instruments seeing such response, it was indeed a laudable achievement for the Issuer team.

CAM provided essential guidance on drafting and finalisation of the offer documents, the debenture trust deed, and debenture trustee appointment agreement along with ensuring compliance of laws applicable in connection with the issue of Debentures by the Issuer.

The Project & Project Finance team of Cyril Amarchand Mangaldas advised on the matter. The transaction was led by Subhojit Sadhu, Partner; with support from Apoorv Jain, Principal Associate; Chahat Gupta, Associate; and Rudraksh Karnik, Associate.

Other parties and advisors to the transaction included The Federal Bank Limited, issuer; SBI

Capital Markets Limited, acted as arranger; and IDBI Trusteeship Services Limited, acted as debenture trustee for the debenture holders. The transaction was signed on September 11, 2024, and closing was done on November 12, 2024.

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