The state-owned Bank of Maharashtra (BoM) said on Wednesday that it had raised Rs 710 crore of bonds to finance business growth. The fund raised via additional Tier 1 (AT1) Basel III compliant bonds of Rs 710 crore (including the green shoe option of Rs 610 crore) is at a coupon rate of 8.74%, the bank said. bank in a press release.
The issue drew an overwhelming response from investors with a 10x subscription against a base issue size of Rs 100 crore. The capital raised via the AT1 bonds will support the growth of the bank’s activities.
The AT1 instrument is perpetual in nature; with option to buy after 5 years.
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