Bank of India has raised Rs 325 crore Tier-I capital through a bond issue. According to a press release issued by the bank, the capital was raised through the issuing of innovative perpetual debt instrument (IPDI) carrying a coupon rate of 9 per cent.
Previously, the bank had raised Rs 1,000 crore through the issue of upper Tier-II bonds. The bank informed that the IPDI bonds have a call option to the bank at the end of 10 years and in case the call option is not exercised, the coupon will be increased by 0.5 per cent.
The issue has received AAA/Stable rating by Crisil and BWR AAA+ rating by Brickwork Ratings India. The press release informed that the issue, which opened on November 25, has received a good response and was fully subscribed much ahead of issue closing date.
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