Bank of India raises Rs 1,800 cr via Basel-III-compliant bonds

Earlier, Bank of India had raised ₹1,352 crore of Basel-III compliant additional tier-I bonds on a private placement basis

State-owned Bank of India on Thursday said it has raised ₹1,800 crore by issuing Basel-III-compliant bonds.

The bank raised ₹1,800-crore Basel-III-compliant tier-II bonds on September 29 on a private placement basis, it said in a statement.

The 10-year tenure bonds with a 5-year call option had a base issue size of ₹1,000 crore and carries a coupon rate of 7.14%.

The issue was oversubscribed by two times, said the lender.

"Bank has also successfully concluded the QIP issue of ₹2,550 crore during August 2021, and with this issuance of QIP (qualified institutional placement), the Government of India stake in the bank has reduced to 81.41% from 90.34% earlier," it said.

Earlier, Bank of India had raised ₹1,352 crore of Basel-III compliant additional tier-I bonds on a private placement basis.

Adequate capital buffer will facilitate better management of asset erosion, if any, and growth in the loan book through better risk appetite in a real sector undergoing revival, it said further.

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