State-owned Bank of Maharashtra (BoM) on Wednesday said it has raised Rs 710 crore from bonds to fund business growth. The fund raised via Basel III compliant Additional Tier 1 (AT1) bonds of Rs 710 crore (including green shoe option of Rs 610 crore) is at a coupon rate of 8.74 per cent, the bank said in a statement.
The issue garnered overwhelming response from investors with subscription of 10 times against base issue size of Rs 100 crore. The capital raised through the AT1 bonds will support the business growth of the bank.
The AT1 instrument is perpetual in nature; with call option after 5 years.