Bank of India raises Rs. 1,500 crore capital via AT1 bond, oversubscribed by 12 times
On 01.12.2022, Bank of India (BoI) has raised Rs 1,500 crore through Basel compliant Additional Tier 1 (AT-1) bonds (base issue: Rs. 500 crore & green-shoe option: Rs. 1000 crore). The rating assigned to these AT-1 Bonds by CRISIL is ‘AA Stable’ and ‘AA Positive’ by Acuité Rating.
BoI announced on 01.12.2022, that it has raised AT-1 Bond of Rs. 1,500 crore at a coupon rate of 8.57% p.a.
The said issue received overwhelming response from bidders by way of bids of a whopping Rs. 6,367 crore (by 47 active bidders) which was 12 times of the base issue size.
The purpose of such capital raising is towards regulatory and growth capital requirements.
