Bank of India to mop up Rs 6,000 cr via bonds

By: |
July 22, 2015 12:27 AM

Bank of India (BoI) is looking to raise up to Rs 6,000 crore through Tier-I or Tier-II bonds, apart from issuing 26 crore equity shares of the face value of Rs 10 each.

Bank of India (BoI) is looking to raise up to Rs 6,000 crore through Tier-I or Tier-II bonds, apart from issuing 26 crore equity shares of the face value of Rs 10 each.

The bank received the shareholders’ nod to raise capital at its 19th annual general meeting held

on Monday.

BoI had raised funds through foreign currency bonds in April. The lender had raised $750 million at a coupon rate of 3.125% through its offshore bond

issue having a tenure of

five years.

According to the bank’s annual report, it issued Basel-III-compliant perpetual additional Tier-I bonds worth R2,500 crore with call option in fiscal year 2015.

“With a view to comply with Basel (II & III) requirements relating to capital adequacy, there is an ever increasing need to raise capital. The capital raised would be utilised to shore up the capital adequacy of the bank and to fund the general business needs,” it said.

In FY15, the bank issued 2.26 crore equity shares of R10 each at a price of R283.50 per share amounting to R642 crore. The annual report added that 2 crore shares were issued to Life Insurance Corporation of India while 26.45 lakh shares were issued to The New India Assurance Company.

BoI is scheduled to report its results for the quarter-ended June on July 28.

The bank reported a loss of R56 crore in the fourth quarter of FY15.

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