large scale image
LCP Image

Back to TSCFM News

Bank of India raises ₹2000 cr via tier-2 bonds at 7.88% coupon

September 14, 2023

Bank of India raises ₹2000 cr via tier-2 bonds at 7.88% coupon
Bank of India on September 13 said it raised ₹2,000 crore through Basel III compliant Tier II bonds maturing in 10 years at 7.88 percent coupon.

As per the bank’s statement, BOI received a total of 83 bids amounting to ₹3,770 crore. Out of these, there were 48 successful bidders totaling ₹2,000 crore.
 
“The Tier II capital is raised for augmenting the overall capital of the Bank and for enhancing the long-term resources in accordance with RBI guidelines,” release said.
 
Earlier today, Moneycontrol reported that Bank of India had planned to float a Basel-III Tier-II bonds.
 
The state-owned lender will utilise the proceeds of the issue for its regular business activities, as per the issuer manual of the bank. “The funds being raised by the Bank through this Issue are not meant for financing any particular project.”
 
Bonds have been rated ‘AA+’ with ‘Stable’ outlook by CRISIL Ratings and ‘AA+’ with ‘Positive’ outlook by Acuite Ratings & Research.
 
The bonds have a call option of five years or on September 15, 2028, or any anniversary date thereafter, subject to Tax Call/ Regulatory Call. If the bank exercises the call option, then the bond will be redeemed on that day. The bonds are proposed to be listed on the wholesale debt segment of the National Stock Exchange of India Limited (NSE).
Important Links:

Recommended for you ...

Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services
Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services

February 12, 2024

Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices
Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices

February 12, 2024

Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices
Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices

February 12, 2024

Enquire Now
REQUEST A CALLBACK
Chat on WhatsApp