Home / Industry / Banking /  Bank of India raises 1,800 cr through Basel-III-compliant bonds
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Bank of India announced on Thursday that it has raised 1,800 crore by issuing Basel-III-compliant bonds.

A company statement read, The bank raised 1,800-crore Basel-III-compliant tier-II bonds on September 29 on a private placement basis.

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 per cent. The issue was oversubscribed by two times, it added. 

"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 per cent from 90.34 per cent earlier," it further said.

The bank had earlier 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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