Bank Of India Raises Rs 602 Crore By Issuing Basel III Compliant Bonds
Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Bank Of India Raises Rs 602 Crore By Issuing Basel III Compliant Bonds

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Bank of India on Friday said it has raised Rs 602 crore by issuing bonds.

BOI has raised Rs 602 crore via Basel III compliant additional tier 1 (AT-1) bonds on March 26, 2021, on a private placement basis, it said in a release.

Earlier on Wednesday, the bank had informed that it plans to raise up to Rs 750 crore under this issue, with a base issue size of Rs 250 crore and a greenshoe option of Rs 500 crore.

The bonds carry a coupon rate of 9.30% per annum, said the lender.

The settlement and allotment of bonds are to take place on March 30.

To comply with Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes.

Also read: NPAs Expected To Increase In First Half Of 2021: FICCI-IBA Survey

These norms are implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

BOI stock closed 0.58% up at Rs 69.70 apiece on the BSE.

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