Bank of Maharashtra (BoM) on Thursday said it has raised Basel III compliant Additional Tier 1 (AT1) bonds of ₹290 crore (including green shoe option of ₹40 crore) at coupon rate of 8.75 per cent.
“The issue garnered overwhelming response from investors with bids of ₹1,055 crore received against a base issue size of ₹250 crore…,” the Pune-headquartered public sector bank said in a statement.
The capital raised through the AT1 bonds will support business growth, it added.
The AT1 instrument is perpetual in nature, with call option after 5 years.
AS Rajeev, MD & CEO, BoM, said the Bank’s capital adequacy ratio (CAR), which is currently at about 15 per cent, will go up about 35 basis points following the AT-1 bonds issue.
With plough back of profit for FY22, the Bank’s CAR is expected to go up to 16 per cent by March-end 2022.