BoI raises Rs 325 cr Tier I capital

Public-sector lender Bank of India (BoI) today raised Rs 325 crore Tier-I capital through a bond issue. The capital has been raised through issuing innovative perpetual debt instrument (IPDI), which carry a coupon rate of 9 per cent, a BoI press release said here today.

Early this year, the bank had raised Rs 1,000 crore through the issue of upper Tier-II bonds. The IPDI bonds have a call option to the bank at the end of 10 years and in case the call option is not exercised, the coupon will be increased by 0.5 per cent, the bank said.

The issue has been rated AAA/Stable by Crisil and BWR AAA+ by Brickwork Ratings India. The issue, which opened on November 25, received a good response and was fully subscribed much ahead of issue closing date, the bank said.