MUMBAI (TIP): IDBI Bank said it has raised Rs 2,500 crore Basel III-compliant additional tier-I (AT-I) bonds. The Rs 2,500 crore bond issue includes an initial size of Rs 1,500 crore, with an option to retain over-subscription upto Rs 1,000 crore. The issue has been fully subscribed prior to the closure date, the bank said in a statement. The issue, opened on September 29, is the first AT-I bond issuance by a bank in the country after RBI modified its Basel III guidelines. The bond offered an annual coupon of 10.75 per cent and was perpetual in nature with call option after the instrument has run for 10 years. “This issuance will pave way for other banks to issue tier I bonds in the domestic market and will increase the acceptance of this instrument among the investors,” the bank’s chairman and managing director M S Raghavan said. The amount mobilized would be counted as a part of tier I capital and enhance the bank’s capital adequacy. The bonds are rated AA by Crisil and India Ratings. The arranger to the issue were Axis Bank, Darashaw & Co, ICICI Bank, Trust Investment Advisors and IDBI Capital Market.