Basel III

Public sector lender Punjab National Bank (PNB) has raised Rs 582 crore by issuing bonds on a private placement basis. The bank has issued and allotted Basel III compliant Additional Tier I bonds at a coupon of 8.40 per cent per annum, aggregating to Rs 582 crore on a private placement basis, the bank said in a regulatory filing on Friday. The bank said the non-convertible taxable bonds will qualify as Tier I capital.

State-owned Bank of Maharashtra (BoM) on Wednesday said it has raised Rs 710 crore from bonds to fund business growth. The fund raised via Basel III compliant Additional Tier 1 (AT1) bonds of Rs 710 crore (including green shoe option of Rs 610 crore) is at a coupon rate of 8.74 per cent, the bank said in a statement. The issue garnered overwhelming response from investors with subscription of 10 times against base issue size of Rs 100 crore. The capital raised through the AT1 bonds will support the business growth of the bank. The AT1 instrument is perpetual in nature; with call option after 5 years.

Non convertible Taxable Perpetual Subordinated Unsecured Basel III compliant Additional Tier 1 Bonds in the nature of debentures of face value Rs 1 Crore each

India's Bank of Baroda plans to raise at least 5 billion rupees ($62.52 million) through sale of Basel III compliant additional Tier I perpetual bonds, say three merchant bankers

"The bank received total bid amount of Rs 5,719 crore, out of which full issuance of Rs 2,000 crore was accepted at 8.24 per cent," Canara Bank said in a regulatory filing.

The lender will separately raise up to Rs 5,000 crore through infrastructure bonds carrying "AAA" rating.

The bonds carry coupon rate of 8.07 per cent per annum

The bank has allotted unsecured, subordinated, non-convertible, taxable, perpetual, fully paid-up Basel III compliant additional tier-I bonds in the nature of debentures, aggregating to Rs 1,500 crore

It would be only the second such offshore offering from an Indian bank after State Bank of India sold such securities in 2016.

Bank of India on Wednesday said it will raise up to Rs 750 crore by issuing Basel III compliant bonds.

State-owned Union Bank of India on Tuesday said it has raised Rs 500 crore debt capital by issuing Basel III compliant bonds. The bank has allotted unsecured, subordinated, non-convertible taxable perpetual fully paid-up Basel III compliant debt instruments in the nature of debentures aggregating to Rs 500 crore on December 15, 2020, Union Bank of India said in a regulatory filing. To comply with Basel-III capital regulations, the banks need to improve and strengthen their capital planning processes. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks. Shares of Union Bank of India on Tuesday closed 1.03 per cent lower at Rs 33.50 apiece on the BSE.

The bonds qualify as tier II capital of the bank, and has face value of Rs 10 lakh each, bearing coupon rate of 6.24 per cent per annum payable annually for a tenor of 10 years, it said

Canara Bank on Friday said it has raised Rs 1,012 crore by issuing Basel III compliant bonds

The issue opened on July 27 and closed on July 29, PNB said

Bank officials said the money raised through tier II bond offering is expected to increase Capital Adequacy Ratio (CAR) by about 50 basis points

CRISIL believes BoB will be able to maintain adequate capitalisation over the medium term, backed by capital support from the Union government

The issue which opened on Thursday and closed the same day, saw a total of 11 allottees through private placement of bonds, the bank said in a BSE filing

To comply with Basel III capital regulations, banks need to improve and strengthen their capital planning processes.

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