Bank of Maharashtra raises Rs 259 crore from Tier-II bonds at 7.99% coupon

The pay-in date of the bonds is set for December 14. It is the date when exchange of bonds and money takes place between issuers and investors.

Public sector lender Bank of Maharashtra (BoM) on December 12 raised Rs 259 crore from 10-year bonds, sources said. The bank raised the bonds at 7.99 percent coupon.

Moneycontrol had earlier reported that the lender will float bonds worth up to Rs 1,000 crore, which will include Rs 250 crore of base issue and Rs 750 crore as greenshoe. A greenshoe is a provision in an underwriting agreement that grants the underwriter the right to sell investors more shares than initially planned by the issuer if the demand for a security issue proves higher than expected.

Bidding for these bonds took place between 11am and 12:30pm on the electronic bidding platform of the BSE. The pay-in date of the bonds is set for December 14. It is the date when exchange of bonds and money takes place between issuers and investors.

The bonds have been rated 'AA+' by CARE and Acuite Ratings.

On November 30, Bank of Baroda (BoB) raised Rs 5,000 crore through 10-year bonds. Earlier on November 28, Power Finance Corporation, Edel Finance Co Ltd, and Auxilo Finserv Pvt Ltd raised Rs 2,749.60 crore through the bond route.

Earlier today, Moneycontrol also reported Indian Railway Finance Corporation (IRFC) plans to issue bonds worth up to Rs 3,000 crore on December 13, the sources said.

The bonds have a base issue size of Rs 500 crore, with retain over subscription of Rs 2,500 crore in greenshoe. The bonds will mature in 10-year or on December 15, 2033.