Bank of Maharashtra (BoM) on Wednesday raised Basel III compliant Additional Tier 1 (AT1) bonds of Rs 290 crore, including green shoe option of Rs 40 crore, at coupon rate of 8.75%.
The issue was subscribed by more than four times. The bank received investor bids of Rs 1,055 crore against a base issue size of Rs 250 crore. The bank plans to use the Rs 290 crore capital raised through the AT1 bonds to support the business growth.
The AT1 instrument is perpetual in nature with call option after five years. The bank has credit ratings of AA (Stable) for AT1 Bonds from Acuite and Infomerics credit agencies.
AS Rajeev, managing director and CEO, BoM, had said that they would be looking at raising around Rs 500 crore this fiscal and another Rs 1,000 crore in the first quarter of FY23 to fund growth plans.
BoM had raised Rs 1,000 crore in October ’21 through a Tier II bond issue to Life Insurance Corporation and Rs 403 crore in July ’21 through QIP at Rs 23.70 per share.
