IOB to raise Rs 1,000 crore through bond issue

Will use it to augment Tier-I capital, capital adequacy ratio

Indian Overseas Bank has launched an issue of Unsecured, Non-Convertible, Additional Tier -I, Basel III Compliant Perpetual bonds to the extent of Rs 1,000 crore.

This includes a green shoe option of Rs 300 crore to augment additional Tier-I capital and strengthen capital adequacy under Basel-III norms.

The issue will have a face value of Rs 10 lakh per bond and carry a coupon rate of 10% per annum payable annually.

The bond issue opened on January 23 for subscription and would close on February 4, 2015. The deemed date of allotment would be February 4, 2015, according to bank's release.