The Hindu Business Line : Syndicate Bank to raise Rs 250 cr thru bond issue

The bank has priced the issue at 9.35 per cent for 15 years. The coupon rises further by another 50 basis points in the event of the call option not being exercised at the tenth year.

The bonds rated `AA plus' would comprise upper tier-two capital of the bank and help further strengthening the capital to risk weighted asset ratio.

The bank's CAR is currently in the region of 11 per cent. But given the high credit offtake, it wanted to further raise the capital. Banking sources said that among the targeted investors were insurance and provident funds. Both these entities were currently looking for high yielding securities to raise their mean yield on investments and partly offset the impact of the low interest realisation on Government securities.

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