OBC - Updates on Raising of Tier I Capital

Oriental Bank of Commerce (OBC) has announced that the Bank has decided to raise Tier I Capital by issuing Perpetual Bonds on Private Placement Basis in the nature of promissory notes for Rs 250 crore (Rs 125 crore with a green shoe option of Rs 125 crore) with call option at the end of ten years from the deemed date of allotment and thereafter on the date of every annual interest payment date with the prior approval of RBI, bearing coupon at the rate of 9.40% p.a. payable annually for initial ten years and thereafter at the rate of 9.90% p.a in case call option is not exercised by the bank. The issue is likely to be opened on November 21, 2006.

Source : Equity Bulls

Keywords