India New Issue-Bank of Maharashtra in talks to issue tier-II bonds - bankers

Bank of Maharashtra

01/12/2023 09:34

By Dharamraj Dhutia and Bhakti Tambe
       MUMBAI, Dec 1 (Reuters) - India's Bank of Maharashtra
 BMBK.NS  is in talks with merchant bankers and investors to
raise funds via the sale of Basel III compliant tier-II bonds
maturing in 10 years, three merchant bankers said on Friday.
    The state-run bank is likely to raise around 10 billion
rupees ($120.01 million) through this issue, and should invite
bids in the second week of December, the bankers added.
    The lender is yet to officially announce the bond issue and
did not respond to a Reuters email seeking comment.
    The bonds are rated AA+ by rating agencies.
    State Bank of India was the last lender to have raised funds
through this route in early November, when it raised 100 billion
rupees. 
    This would be the second bond issue in around four months
from the bank, and could have a call option at the end of five
years and every year thereafter to make it more attractive for
investors. 
    In September, the bank had raised 5.15 billion rupees
($62.03 million) selling Basel III compliant tier-II bonds
maturing in 10 years at a 7.98% coupon. This issue has a call
option at the end of five years. 
($1 = 83.3275 Indian rupees)

 (Reporting by Dharamraj Dhutia and Bhakti Tambe
Editing by Sonia Cheema)
 ((Dharamraj.dhutia@tr.com))