New Delhi: State-owned Central Bank of India has raised Rs 500 crore by issuing Basel III compliant tier II bonds. The bank will offer an interest rate of 8.62 per cent per annum to the bond holders, the bank said in a regulatory filing.
The security instruments in the form of non-convertible redeemable unsecured Basel III compliant tier II bonds placed on a private placement has 122 months maturity period.
Banks issue Basel III compliant bonds to raise money to strengthen their capital planning and mitigate concerns on potential stresses on asset quality and consequential impact on their performance and profitability.
The internationally accepted Basel III norms are being implemented in phases since April 1, 2013 by banks in India. Banks need to be fully compliant with Basel III standards by March 2019.
Shares of Central Bank of India closed 0.06 per cent down at Rs 84.85 on BSE.
