OBC to raise Rs 250 cr as Tier I capital

New Delhi, Nov 20: Oriental Bank of Commerce (OBC) today said it will raise Tier I Capital by issuing perpetual bonds on a private placement basis in the nature of promissory notes for Rs 250 crore.

The issue is likely to be opened tomorrow, the bank said in a statement.

The bank will raise the funds with a green shoe option of Rs 125 crore and a call option at the end of ten years from the deemed date of allotment and thereafter on the date of every annual interest payment date with the prior approval of RBI, bearing coupon at the rate of 9.40 per cent per annum payable annually for initial ten years and thereafter at the rate of 9.90 per cent per year, in case call option is not exercised by the bank.

UNI