India New Issue-Bank of Maharashtra accepts bids for tier II bonds - bankers

Bank of Maharashtra

12/12/2023 08:59

MUMBAI, Dec 12 (Reuters) - India's Bank of Maharashtra  BMBK.NS  has accepted bids worth
2.59 billion rupees ($31.06 million) for Basel III compliant tier II bonds maturing in 10 years,
three merchant bankers said on Tuesday.
    The state-run bank will pay a coupon of 7.99%, and had invited bids from bankers and
investors earlier in the day, the bankers said.
    The issue has a call option at the end of five years. 
    This would be the lender's second bond issue in the current financial year. In September,
the bank had raised 5.15 billion rupees, selling 10-year tier II bonds at 7.98% coupon. This
issue has a call option at the end of five years.


    
 Here is the list of deals reported so far on Dec. 12
                                                                             
 Issuer            Tenure        Coupon (in %)  Issue size (in  Bidding      Rating
                                                bln rupees)*    date         
                                                                             
 Bank of           10 yr         7.98           2.59            Dec. 12      AA+
 Maharashtra                                                                 (Careedge,
                                                                             Acuite)
             Tata  5 yr          8.10           8.98            Dec. 12      AAA (Crisil,
 Capital Housing                                                             ICRA)
 Finance                                                                     
                                                                             
             PFC          15 yr  To be decided          6 + 29  Dec. 13      AAA (Crisil,
                                                                             ICRA)
 Hinduja Leyland           3 yr  8.80                        1  Dec. 13      AA (Crisil,
 Finance                                                                     Careedge)
 
*Size includes base plus greenshoe for some issues


   ($1 = 83.3825 Indian rupees)

 (Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)
 ((Dharamraj.dhutia@tr.com))