India New Issue-Bank of Maharashtra to issue Tier II bonds - bankers

Bank of Maharashtra

06/12/2023 11:20

MUMBAI, Dec 6 (Reuters) - India's Bank of Maharashtra  BMBK.NS  plans to raise at least
2.50 billion rupees ($30.00 million) through the sale of Basel III compliant tier-II bonds
maturing in 10 years, three merchant bankers said on Wednesday.
    The state-run bank has invited bids from bankers and investors on Tuesday, the bankers
added.
    Last week, Reuters reported the state-run lender is in talks with merchant bankers and
investors to raise around 10 billion rupees via Tier II bonds in the second week of December. 
    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 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.
    
 
 Here is the list of deals reported so far on Dec. 6
             Issuer                                                              
                                Tenure   Coupon (in %)  Issue size (in           Rating
                                                        bln rupees)*    Bidding  
                                                                        date     
                                                                                 
                                                                                 
 Bank of Maharashtra          10 yrs     To be decided  2.50 + 7.50     Dec. 12  AA+ (Acuite)
 Tata Capital Financial       10 yrs     8.11           25              Dec. 6   AAA (Icra)
 Services                                                                        
             Muthoot Finance  3 yrs      8.85           10              Dec. 6   AA+ (Crisil,
                                                                                 Icra)
             IIFCL            15 yrs     7.67           10              Dec. 6   AAA (Icra,
                                                                                 India Ratings)
             Kotak Mahindra   15 mnts    8.20 (yield)   0.50            Dec. 5   AAA (Crisil)
 Investments Feb 2025                                                            
 reissue                                                                         
                                                                                 
 Kotak Mahindra Investments   1 yr and   8.26 (yield)   1.95            Dec. 5   AAA (Crisil)
 Nov 2025 reissue             11 mnts                                            
 Kotak Mahindra Investments   3 yrs and  8.26 (yield)   2               Dec. 5   AAA (Crisil)
 Jan 2027 reissue             2 mnts                                             
             HDB Financial    1 yr 11    8.25 (yield)   8.76            Dec. 5   AAA (Crisil,
 Services Nov 2025 reissue    mnts                                               Careedge)
                                                                                 
 HDB Financial Services Dec   3 yrs      8.25 (yield)   1.15            Dec. 5   AAA (Crisil,
 2026 reissue                                                                    Careedge)
 
*Size includes base plus greenshoe for some issues


($1 = 83.3243 Indian rupees)

 (Reporting by Dharamraj Dhutia; Editing by Sohini Goswami)
 ((Dharamraj.dhutia@tr.com))