Bank of Maharashtra Set To Issue Rs 1,000 Cr Bonds On 12 Dec
Market sources revealed that Bank of Maharashtra is set to release bonds totaling up to Rs 1,000 crore on 12 December. This includes a base issue of Rs 250 crore and Rs 750 crore allocated for the greenshoe option.
The bonds, falling under Tier-II category, will have a maturity period of 10 years with a callable option after five years. These bonds represent a type of debt instrument utilised by banks to generate operational capital, constituting a portion of the bank's Tier-II capital and ranking subordinate to Tier-I capital.
Bidding for these bonds is scheduled between 11 am and 12:30 pm on the BSE's electronic bidding platform. The pay-in date for the bonds is slated for 14 December, signifying the exchange of bonds and funds between issuers and investors.
CARE and Acuite Ratings have rated these bonds as 'AA+', as per sources.
Earlier reports from 23 November indicated the bank's plans to raise Rs 1,000 crore in December through bond issuances, as per sources. Similarly, on 8 December, Navi Finserv and Rural Electrification Corp successfully secured funds via bond issuances. Navi Finserv raised Rs 100 crore at a 10.25 per cent coupon rate, while REC acquired Rs 3,539.40 crore through 15-year bonds at 7.67 per cent and Rs 1,033 crore from two-year bonds at 7.79 per cent.
