BoM to raise Rs 200 cr from bonds

Bank of Maharashtra (BoM) on Monday said it will raise up to Rs 200 crore from Tier II bonds to augment its capital adequacy requirements.It would be unsecured, non-convertible redeemable subordinated Upper Tier II bonds in the nature of promissory notes, BoM informed the Bombay Stock Exchange.

The bonds will carry coupon rate of 10.35 per cent per annum for a period of first 10 years with a step-up coupon rate of 10.85 per cent annualy for the remaining 5 years if call option is not exercised at the end of 10th year from the date of allotment, it said.

The issue opens for subscription tomorrow and closes on July 23. The deemed date for allotment is July 25.