Bank of Maharashtra to float Rs 1,000-cr bonds on Dec 12

Bonds have been rated 'AA+' by CARE and Acuite Ratings, sources added.

Bank of Maharashtra will float bonds worth up to Rs 1,000 crore on December 12, market sources said. It includes Rs 250 crore of base issue and Rs 750 crore as greenshoe.

The bank will issue Tier-II bonds maturing in 10 years with a call option after five years.

The Tier-II bonds are a type of debt instrument banks issue to raise capital for their operations. Tier-II bonds form a part of the bank's Tier-II capital and are subordinate to Tier-I capital.

Bidding for these bonds will take place between 11am and 12:30pm on the electronic bidding platform of the BSE.

The pay-in date of the bonds is set f0r 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, sources added.

On November 23, Moneycontrol had reported, citing sources, that the bank will raise Rs 1,000 crore in early December. "Bank of Maharashtra may issue bonds and bidding for these bonds will take place in early December," one of the sources had said.

On December 8, Navi Finserv and Rural Electrification Corp raised funds through bonds. Navi Finserv raised Rs 100 crore through bonds at a coupon rate of 10.25 percent, while REC issued two bonds and raised Rs 3,539.40 crore through 15-year bonds at 7.67 percent, and raised Rs 1,033 crore from two-year bonds at 7.79 percent.