Corporation Bank is planning to raise Rs 500 crore through issue of unsecured, subordinated, perpetual additional Tier-I Basel-III compliant non-convertible taxable bonds on private placement basis. The bonds are in the nature of debentures and the issue, which opened on January 20, will close on February 2, 2015.
The Bank has secured AA-/Stable rating from CRISIL and IND AA-/Stable rating from India Ratings and Research. Each bond is priced at Rs 10 lakh and the minimum application size is fixed at 10 bonds and in multiples of one bond thereafter.
The coupon rate is fixed at 9.51% per annum. The call option is discretionary and can be exercised only after the bonds have run for at least five years from the deemed date of allotment subject to RBI approval.
