Oriental Bank of Commerce to launch Rs. 1,000 crore bond issue to comply with Basel III norms

State-owned Oriental Bank of Commerce plans to raise up to Rs1,000 crore by issuing Basel III compliant bonds on a private placement basis.

“The bank intends to raise tier I capital through private placement of Basel III compliant additional tier I bonds of Rs 10 lakh each aggregating to Rs 500 crore with an option to retain subscription of up to Rs 500 crore,” it said in a regulatory filing.

The Gurgaon-headquartered bank said the proposed bond issue has been rated A (Hyb) with negative outlook by ICRA and A with negative outlook by CARE. Banks across the globe have to mandate themselves with the Basel III standards that seek to protect them against unfavorable economic conditions by improving and strengthening their capital planning processes.

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