Public sector lender Indian Bank on Friday said it has raised Rs 500 crore through issue of bonds on a private placement basis as part of its plan to fund credit expansion.

This is part of the Rs 1,000 crore amount to be raised by the lender for its expansion.

The Bank has raised capital to the extent of Rs 500 crore by issuing unsecured redeemable non-convertible subordinated lower tier II bonds on private placement basis, Indian Bank said in a filing to the Bombay Stock Exchange.

The bonds, which opened and closed on June 28, has a coupon rate of 8.53 per cent, the filing added.

The bank had earlier informed the BSE that it will raise up to Rs 1,000 crore from bonds in 2010-11 to fund credit expansion.

At its meeting held on May 31, Indian Bank had accorded approval to raise tier-II capital in one or more tranches during the year.

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