Bank of Maharashtra mops up ₹290 crore via AT1 bonds

BL Mumbai Bureau | Updated on: Mar 24, 2022

Receives bids aggregating ₹1,055 crore against base issue size of ₹250 crore

Bank of Maharashtra (BoM) on Thursday said it has raised Basel III compliant Additional Tier 1 (AT1) bonds of ₹290 crore (including green shoe option of ₹40 crore) at coupon rate of 8.75 per cent.

“The issue garnered overwhelming response from investors with bids of ₹1,055 crore received against a base issue size of ₹250 crore…,” the Pune-headquartered public sector bank said in a statement.

The capital raised through the AT1 bonds will support business growth, it added.

The AT1 instrument is perpetual in nature, with call option after 5 years.

AS Rajeev, MD & CEO, BoM, said the Bank’s capital adequacy ratio (CAR), which is currently at about 15 per cent, will go up about 35 basis points following the AT-1 bonds issue.

With plough back of profit for FY22, the Bank’s CAR is expected to go up to 16 per cent by March-end 2022.

Published on March 24, 2022
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