Money & Banking

Bank of India raises ₹750 cr via AT-1 bonds

Our Bureau. Mumbai | Updated on January 27, 2021

Bank of India (BoI), on Wednesday, raised ₹750 crore via Basel III-compliant Additional Tier 1 (AT-1) bonds of five year tenor at a coupon rate of 9.04 per cent.

The public sector bank, in a statement, said the AT-1 bond issue, which was on private placement basis, was over-subscribed with receipt of bids up to ₹1,017 crores against issue size of ₹750 crore.

Credit rating agency ICRA, in a report, observed that the appetite of investors towards the AT-I bonds of public sector banks has improved recently with more public banks issuing AT-I bonds in FY21 compared to FY20.

If banks can raise a part of the ₹43,000-crore capital through AT-Is and market sources, it could reduce the Government of India’s (GoI) recapitalisation burden for the coming fiscal, the agency added

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Published on January 27, 2021
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