BoM raises ₹880 Cr through AT1 bonds; issue subscribed more than 4 times
2 min read . Updated: 22 Dec 2022, 07:59 PM IST
Premium- Bank of Maharashtra (BoM) raises ₹880 crore through bonds; issue subscribed over 4 times.
The public sector lender Bank of Maharashtra (BoM) said on Thursday that it has raised Rs. 880 crore through Additional Tier 1 (AT1) bonds that complied with Basel III. The issue closed on the same day and the deemed date of allotment is 26.12.2022.
According to a statement from the bank, the offering, which included a green shoe option worth ₹680 crore, received more than four times the subscription as its base size of ₹200 crore. The bonds have been issued at a coupon rate of 8.74 per cent, said BoM.
“The capital of ₹880 crores raised through the AT1 bonds will support the business growth of the bank. The AT1 instrument is perpetual in nature; with call option after 5 years. The Bank has credit ratings of AA (Stable) for AT1 Bonds," said Bank of Maharashtra (BoM) in an official statement. The said Bonds will be listed on the Wholesale Debt Market segment of the BSE Limited, said BoM.
Bank of Maharashtra said in a statement that it “has received total bids of Rs.990/- crore for its issue of Basel III Compliant Additional Tier 1 Bonds on private placement basis. Further, Bank has accepted bid of Rs.880/- crore (including Base issue of Rs.200 crore and Green shoe option retained upto Rs.680 crore) at coupon rate of 8.74%."
The bonds have been rated “ACUITE AA /Stable" by Acuite Ratings & Research Limited and “IVR AA /Stable" by Infomerics Valuation and Rating Pvt. Ltd.
On December 6, Bank of Maharashtra raised ₹348 crore through the private placement sale of tier-2 bonds with an 8% coupon rate.
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The shares of Bank of Maharashtra Ltd closed today at ₹29.10, down by 2.84% from the previous close of ₹29.95. The stock recorded a total volume of 91,782,979 shares compared to the 20-Day average volume of 69,734,581 shares. On a YTD basis, the stock has gained 50.00% so far in 2022.
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