Bank of Maharashtra likely to sell Rs 1000 crore of AT-1 bonds

Over the last couple of weeks, banks have made a beeline to raise funds by issuing debt instruments

State-owned Bank of Maharashtra is likely to issue up to Rs 1,000 crore worth of additional tier-1 (AT-1) bonds in coming days, sources said.

The bonds, which are likely to have a call option after 5 years from allotment, have been rated AA by Acuite Rating and Infomerics Ratings. On December 6, Bank of Maharashtra had raised Rs 348 crore through the sale of tier-2 bonds on a private placement basis at a coupon—the rate of interest paid to the investor—of 8 per cent.

The Pune-based lender had last tapped debt capital markets through AT-1 bonds in September, raising capital