Bank of India raises Rs 2,500 crore from Tier II bonds

New Delhi: State-owned Bank of India (BoI) on Wednesday said it has raised Basel III-compliant Tier II bonds of Rs 2,500 crore to fund business growth.

The bonds have a coupon rate of 7.28 percent per annum, BoI said in a statement

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The base issue size was Rs 1,000 crore with a green shoe option of Rs 1,500 crore, it said.

The Tier II capital is raised for augmenting the overall capital of the bank and for enhancing the long-term resources in accordance with the RBI guidelines.

The funds raised by the bank through this issue are not meant for financing any particular project, it said, adding that the bank will utilise the proceeds of this issue for its normal business activities.

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