Bank of India raises Rs. 1,500 crore capital via AT1 bond, oversubscribed by 12 times.
Bank of India (BoI) has raised Rs 1,500 crore through Basel compliant Additional Tier 1 (AT-1) bonds (base issue: Rs. 500 crore & green-shoe option: Rs. 1000 crore). The rating assigned to these AT-1 Bonds by CRISIL is ‘AA Stable’ and ‘AA Positive’ by Acuité Rating.
BoI announced on 01.12.2022, that it has raised AT-1 Bond of Rs. 1,500 crore at a coupon rate of 8.57% p.a.
The said issue received overwhelming response from bidders by way of bids of a whopping Rs. 6,367 crore (by 47 active bidders) which was 12 times of the base issue size.
The purpose of such capital raising is towards regulatory and growth capital requirements.
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