The Hindu Business Line : Corpn Bank tier II bonds

Corporation Bank has opened an issue of unsecured, redeemable, non-convertible, non-cumulative subordinated Tier IIbonds of Rs 300 crore on private placement, according to a bank release here.

The release said on Monday that the objective is to augment the long-term resources of the bank and to meet future capital adequacy requirements.

The bonds have been rated `AAA/Stable' by Crisil and `LAAA' by ICRA.

The capital adequacy ratio stood at 14.91 per cent as on December 31. As per the Basel II requirements, there will be an additional capital charge for credit , market and operational risks.

In order to be prepared for the projected increase in credit and Basel II requirements, the bank has come with tier II bonds to the extent of Rs 300 crore.

The face value is Rs 10 lakh per bond, the tenor is 10 years and coupon rate is 7.90 per cent per annum fixed.

Deutsche Bank and Standard Chartered Bank have arranged the issue. The issue, which has been fully subscribed, closed on March 24, it said. The bonds will be listed in the NSE under wholesale debt market segment, the release added.

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