BANKS
Bank of Maharashtra raises Rs 710 cr via bonds
Bank of Maharashtra raises Basel III compliant AT1 bonds of Rs 710 crore at coupon rate of 8.74%; this will be utilised to fund the bank’s business growth.
Bank of Maharashtra raises Basel III compliant AT1 bonds of Rs 710 crore at coupon rate of 8.74%; this will be utilised to fund the bank’s business growth.
State-owned Bank of Maharashtra has raised Rs 710 crore from bonds to fund business growth.
The bank said it raised Basel III compliant Additional Tier 1 (AT1) bonds of Rs 710 crore (including green shoe option of Rs 610 crore) at a coupon rate of 8.74%.
The issue garnered overwhelming response from investors with subscription of 10 times against base issue size of Rs 100 crore.
The AT1 bonds were fully subscribed within 15 minutes of opening of the issue, the bank said.
The AT1 instrument is perpetual in nature, with call option after five years.
The bank has credit ratings of AA (Stable) for AT1 bonds.
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