Central Bank of India raises ₹1,500 cr via 10-year bonds at 8.80%

Central Bank of India raised ₹1,500 crore via Basel III-Compliant Tier II Bonds on private placement basis at a coupon rate of 8.80 per cent. The public sector bank can exercise call option on these bonds, which have a tenor of 10 years, on or after 5 years from the date of allotment with prior approval of the RBI.

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Against the overall issue size of ₹1,500 crore (including base size of ₹500 crore and green shoe option of ₹1,000 crore), the bank received total bids of ₹1,516 crore from investors, per the bank’s statement. Further, the bank decided to accept bid of ₹1,500 crore.