Bank of India raises Rs 602 crore by issuing Basel III compliant bonds

Bank of India (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 cent 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.

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 per cent up at Rs 69.70 apiece on the BSE.