Pune: Bank of Maharashtra, a premier public sector bank in the country has raised Basel III compliant Additional Tier 1 (AT1) bonds of Rs 710 crores (including green shoe option of Rs 610 crores) on Wednesday at a coupon rate of 8.74 percent. The issue garnered an overwhelming response from investors with subscriptions of 10 times against the base issue size of Rs 100 crores. The AT1 bonds were fully subscribed within fifteen minutes from the opening of the issue.
The capital of Rs 710 crores raised through the AT1 bonds will support the business growth of the bank. The AT1 instrument is perpetual in nature; with a call option after 5 years. The Bank has credit ratings of AA (Stable) for AT1 Bonds.
