Bank of Baroda on Wednesday said its board has approved raising up to Rs 1,285 crore by issuing Basel III compliant bonds.
In two separate decisions, the committee of the bank approved issuance of tier II capital bonds compliant with Basel III capital regulations of Rs 1,000 crore, with a base issue size of up to Rs 250 crore and a green shoe option to retain oversubscription up to Rs 750 crore in single or multiple tranches, the bank said in a regulatory filing.
Additionally, the committee also approved “issuance of tier II capital bonds compliant with Basel III capital of Rs 285 crore, with a base issue size up to Rs 100 crore with a green shoe option to retain oversubscription up to Rs 185 crore,” the bank added.
Shares of the state owned bank closed 3.16 per cent down at Rs 119.40 apiece on the BSE.
The government approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda (BoB) to make it a globally competitive lender. With the merger, BoB will become the third largest bank after State Bank of India and ICICI Bank.
On Wednesday, BoB also set the share swap ratio for the merger of Vijaya Bank and Dena Bank with itself. Shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held. In case of Dena Bank, its shareholders will get 110 shares for every 1,000 shares of BoB.
Source: Mint