Public sector undertaking lender Bank of India on 13th of September i.e Wednesday announced that it had raised Basel III compliant Tier II bonds of ₹2,000 crores at 7.88 percent per annum. At the time of releasing the information about the subjects , the PSB also issued a press release informing that the fundraising was done through NSE’s Electronic Bidding Provider Platform.
The further details about this issue include that, the BoI said that it received a total of 83 bids amounting to ₹3,770 crores. “The bank received a total of 83 bids amounting to ₹3,770 crores. Out of these, there were 48 successful bidders totaling ₹2,000 crores,” the BoI said. According to the details, the Tier II capital is raised for augmenting the overall capital of the Bank and for enhancing the long-term resources by RBI guidelines.The funding which is being arranged by the lender through this issue is not meant for financing any particular project and but it should focus on utilising the proceeds of this issue for its regular business activities.