Dena Bank raises Rs 850 cr from bonds

Funds raised to augment long term resources, meet futures capital adequacy

State-owned Dena Bank today said it has raised Rs 850 crore from bonds to fund business growth.

The fund raised on private placement basis for an amount of Rs 500 crore and green shoe option to retain Rs 350 crore, Dena Bank said in a BSE filing.

The bank has raised lower Tier-II bonds to augment long term resources and to meet its future capital adequacy ratio requirements, it said.

The bonds are carrying a coupon of 9.23% per annum payable annually and are redeemable after 15 years from the deemed date of allotment with call option at the end of 15 years, it said.

The issue was fully subscribed aggregating to Rs 850 crore, it added.