Bank of India raises Rs 2,500 cr from Tier II bonds

New Delhi, Dec 10 (PTI) State-owned Bank of India (BoI) on Wednesday said it has raised Basel III-compliant Tier II bonds of Rs 2,500 crore to fund business growth.

The bonds have a coupon rate of 7.28 per cent per annum, BoI said in a statement The base issue size was Rs 1,000 crore with a green shoe option of Rs 1,500 crore, it said.

The Tier II capital is raised for augmenting the overall capital of the bank and for enhancing the long-term resources in accordance with the RBI guidelines.

The funds raised by the bank through this issue are not meant for financing any particular project, it said, adding that the bank will utilise the proceeds of this issue for its normal business activities. PTI DP DP SHW