Indian Overseas Bank plans to raise Rs 1,000 crore to augment additional Tier-1 capital

Indian Overseas Bank, the public sector lender, plans to raise Rs 1,000 crore to augment the additional Tier-I capital and also to strengthen its overall capital.

"Indian Overseas Bank has launched an issue of unsecured, non-convertible, additional Tier-I, basel III compliant perpetual bonds to the extent of Rs 1,000 crore, including an option of Rs 300 crore to augment additional Tier-I capital", the Chennai-based bank said in a statement.

Tier I capital is core capital and includes equity capital and disclosed reserves.

The Bond will have a face value of Rs 10 lakh per bond and carry a coupon rate of 10 per cent per annum payable annually.

The bond issue was opened on January 23 for subscription and would close on February 4, 2015, it said.