Bank of Maharashtra to float Rs 1,000 crore in bonds

11 Dec 2023 , 01:39 PM

According to news reports, Bank of Maharashtra would offer bonds for up to Rs 1,000 crore on December 12. Base issue of Rs 250 crore and greenshoe of Rs 750 crore are included.

Tier-II bonds having a 10-year maturity and a call option after five years will be issued by the bank.

One kind of debt instrument that banks issue to raise money for their operations is the Tier-II bond. Subordinate to Tier-I capital, Tier-II bonds are a component of the bank’s Tier-II capital.

These bonds will be put up for bid on the BSE’s electronic bidding platform between 11 a.m. and 12:30 p.m.

The bonds’ pay-in date is scheduled for December 14. This date marks the exchange of bonds and cash between investors and issuers.

According to reports, CARE and Acuite Ratings have assigned the bonds a ‘AA+’ rating.

Bonds were issued on December 8 by Rural Electrification Corp. and Navi Finserv. While REC issued two bonds and raised Rs 3,539.40 crore through 15-year bonds at 7.67 percent and Rs 1,033 crore through two-year bonds at 7.79 percent, Navi Finserv raised Rs 100 crore through notes at a coupon rate of 10.25 percent.

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