Bank Of India Raises Rs 2,500 Crore Via Tier II Bonds

The Tier II capital is raised for augmenting the overall capital of the Bank and for enhancing the long term resources in accordance with the RBI guidelines, said Bank of India.

New Delhi: Public Sector lender Bank of India has raised Basel III compliant Tier II bonds of Rs 2,500 crore at 7.49 percent interest through NSE Electronic Bidding Provider Platform.  

"The Base Issue size was Rs.1,000 crore with Green Shoe option of Rs 1,500 crore. Bank received total of 76 bids amounting to Rs 6,046 crore. Out of this, bonds were allotted to 42 bidders amounting to Rs 2,500 crore," BOI said in a statement. 

The Tier II capital is raised for augmenting the overall capital of the Bank and for enhancing the long term resources in accordance with the RBI guidelines.  The funds raised by the Bank through this issue is not meant for financing any particular project.  The Bank shall utilize the proceeds of this issue for its normal business activities, it added.