Bonds help the Bank of Maharashtra raise $710 million

Bank of Maharashtra raise $710 million: The government-owned Bank of Maharashtra (BoM) reported raising Rs 710 crore through bonds to finance company expansion. According to a statement from the bank, the money was raised through Basel III compliant Additional Tier 1 (AT1) bonds for Rs 710 crore (including Rs 610 crore for the green shoe option) at a coupon rate of 8.74 percent.

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Bank of Maharashtra raise $710 million: Key Points

• When compared to the base issue size of Rs 100 crore, the issue received a ten-fold increase in subscription from investors.
• The bank’s business growth will be supported by the money raised through the AT1 bonds.
• The AT1 instrument has a five-year call option and is eternal in nature.

About Bank of Maharashtra:

A nationalised bank, Bank of Maharashtra is owned by the Indian government’s Ministry of Finance. By March 2022, the bank had 2022 branches around the nation and 29 million customers. In the state of Maharashtra, it boasts the broadest network of branches of any nationalised bank. At the close of business on December 31, 2021, the bank’s total revenue exceeded 3,15,620 lakh crore.

Bank of Maharashtra: Important Takeaways

• Chairman and Managing Director, Bank of Maharashtra: Shri. S. Muhnot