Indian Overseas Bank (IOB) has launched an issue of Unsecured, Non-Convertible, Additional Tier -I, Basel III Compliant Perpetual bonds to the extent of Rs 1,000 crore. This includes a green shoe option of Rs 300 crore to augment additional Tier-I capital and strengthen capital adequacy under Basel-III norms.
The issue will have a face value of Rs 10 lakh per bond and carry a coupon rate of 10% per annum payable annually. The bond issue opened on January 23 for subscription and would close on February 4, 2015. The deemed date of allotment would be February 4, 2015.