Bank of India to issue bonds worth up to Rs 2,000 cr today; allotment on September 15
Bidding for the bonds will take place on September 13 between 10 AM and 12 PM on the electronic bidding platform of the National Stock Exchange of India.
Bank of India to issue bonds worth up to Rs 2,000 cr today; allotment on September 15
Bidding for the bonds will take place on September 13 between 10 AM and 12 PM on the electronic bidding platform of the National Stock Exchange of India.
Bonds have been rated ‘AA+’ with ‘Stable’ outlook by CRISIL Ratings and ‘AA+’ with ‘Positive’ outlook by Acuite Ratings & Research.
Bank of India plans to float a Basel-III Tier-II bonds on September 13 to raise up to Rs 2,000 crore, money market sources said. These bonds will mature in 10 years or 120 months. The total amount the bank plans to raise has a base issue size of Rs 1,000 crore and a green shoe option to retain oversubscription up to Rs 1,000 crore, as per the term sheet of the issue.
“The bank is planning to raise up to Rs 2,000 crore via bonds on September 13. These bonds also have a call option of five years,” said a source close to development on September 12.
Bidding for the bonds will take place on September 13 between 10 AM and 12 PM on the electronic bidding platform of the National Stock Exchange of India. The pay-in date and deemed date of allotment is on September 15.
Bonds have been rated ‘AA+’ with ‘Stable’ outlook by CRISIL Ratings and ‘AA+’ with ‘Positive’ outlook by Acuite Ratings & Research.
The state-owned lender will utilise the proceeds of the issue for its regular business activities, as per the issuer manual of the bank. “The funds being raised by the Bank through this Issue are not meant for financing any particular project.”
The bonds have a call option of five years or on September 15, 2028, or any anniversary date thereafter, subject to Tax Call/ Regulatory Call. If the bank exercises the call option, then the bond will be redeemed on that day. The bonds are proposed to be listed on the wholesale debt segment of the National Stock Exchange of India Limited (NSE).
The issuer shall make an application to the NSE to list the bonds and seek listing permission within T+3 days from the closure of the issue (T day), the bank said in term sheet.
Default specifics
Further, the bank added that in case of delay in listing of the debt securities beyond the above said period, the issuer will pay a penal interest of at least 1 percent per annum over the coupon rate for the period of delay to the investor (i.e. from the deemed date of allotment till the listing of such debt securities).
The bank also said in case of default (including delay) in payment of interest and/or principal redemption on the due dates, additional interest at 2 percent per annum over the coupon rate will be payable by the issuer for the defaulting period.
To complete the issue, the state-owned lender has appointed IDBI Trusteeship Services Ltd as debenture trustee for the issue and Bigshare Services as registrar.
On September 13, Axis Finance raised Rs 150 crore through bonds maturing on December 11, 2026, while LIC Housing Finance raised Rs 500 crore via bonds maturing on May 19, 2026, as per NSE-EBP data.
#bankofindia #modernbusinessnetwork #modernusinessindia #modernbusinessamerica #modernbusinesseurope #modernbusinessasia #modernbusinessgulf #modernbusinessgermany #modernbusinessworld #modernbusinesstimes #modernbusinessindiamagazine #magazine #indianmagaz
