Mumbai: Bank of India has raised ₹2,500 crore through the issuance of Basel III-compliant Tier II bonds at a coupon rate of 7.28% per annum, reinforcing its capital structure and long-term resource base.
The fundraising was conducted via the NSE Electronic Bidding Provider Platform.
The bank issue included a base size of ₹1,000 crore, accompanied by a green shoe option of ₹1,500 crore.
The public sector lender received 68 bids amounting to ₹4,982 crore, significantly oversubscribing the offering. Of these, 29 bids were accepted, meeting the full issue size of ₹2,500 crore.
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Bank of India Strengthens Capital Base with Tier II Issue
The bank stated that the Tier II capital has been mobilized to bolster its overall capital adequacy in line with Reserve Bank of India (RBI) guidelines.
The funds are not earmarked for any specific project; instead, the proceeds will support the bank’s routine business activities and operational requirements.
The successful bond issue highlights strong investor confidence in the public sector lender’s financial position and aligns with the bank’s ongoing efforts to enhance its capital buffers under the Basel III framework.
