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

Bank of India (BOI) has raised 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 750 crore under this issue, with a base issue size of 250 crore and a greenshoe option of 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.

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 69.70 apiece on the BSE.

This story has been published from a wire agency feed without modifications to the text.

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