Bank Of India has informed the Exchange regarding 'Redemption of Additional Tier I Bond Series VII ISIN No.INE084A08144'.
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Bank of India has fully redeemed its 9.30% Additional Tier I Bonds Series VII by exercising the call option on 30 March 2026. The total principal redeemed is Rs. 602 crores, with an additional broken period interest of Rs. 5.57 crores paid to bondholders. The outstanding amount on this bond series is now Nil. The bank had 6,020 non-convertible debentures under this series, and this was a full (not partial) redemption.
This is a routine capital management action and is broadly neutral for shareholders. The bank is calling back its AT1 capital which carried a 9.30% cost; if current rates are lower, this could modestly improve future profitability, but the bank may need to raise replacement capital at prevailing rates.