Axis Bank extends USD 200 mn CP programme by 1 yr

Private sector Axis Bank today said it has extended its USD 200 million US Commercial Paper (CP) programme by one year.

The programme was initially set up on October 4, 2010, and now the new maturity date is September 30, 2012, Axis Bank said in a statement.

The proceeds of the funds will be issued for general corporate purposes, it said.

The bank has already raised USD 200 million. Since the the redemption period is extended by one year, the bank has to pay interest for the extended period.

The programme has been assigned a short-term issue rating of 'A-1' by Standard & Poor and a short-term rating of 'Prime-1' by Moody's Investor Service, it said.

Bank of America's irrevocable, direct-pay letter of credit of USD 200 million provides full support for the payment of commercial paper notes upon maturity, it added.