Dena Bank raises capital fund worth Rs 125 crore

Mumbai, Dec 22: Public sector lender Dena Bank today announced that it has raised capital funds worth Rs 125 crore to augment long term resources of the bank and to meet its future capital adequacy ratio.

The bank has raised the capital fund through innovative hybrid tier-I perpetual bonds in the nature of debentures on private placement basis for an amount of Rs 125 crore, including green shoe option of Rs 25 crore, a bank release stated. The bonds carry a coupon at the rate of 10.05 per cent per annum and are perpetual in nature with a call option with the bank, exercisable at the end of tenth year from the date of allotment.

If the call option is not exercised, then coupon will step up by 50 basis points, the release added.

UNI