Bank of Maharashtra raises Rs710 crore through perpetual, callable bonds

8 Sep 2022 , 12:19 PM

The state-owned Bank of Maharashtra (BoM) raised Rs710 crore in bonds to fund commercial expansion. The Rs710 crore fund was raised using Basel III-compliant Additional Tier 1 (AT1) bonds (with a green shoe option of Rs610 crore) at a coupon rate of 8.74%.

The issuance received a tremendous reaction from investors, with subscriptions exceeding ten times the amount of the original issue of Rs100 crore.

The capital raised through the AT1 bonds will help the bank’s business flourish.

The AT1 instrument is perpetual in nature, with a 5-year call option.

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