Mangalore-based public sector lender, Corporation Bank proposes to raise Rs 500 crore to augment its Upper Tier-II capital by issuing unsecured redeemable non convertible subordinated upper Tier-II bonds in the nature of promissory notes. The face value of the bond issue is Rs 10 lakh per bond with a tenor of 15 years.
The bonds carry a coupon rate of 8.25 per cent for first 10 years and step up coupon rate of 8.75 per cent per annum for the last five years if call option is not exercised by the bank at the end of 10th year. The interest is payable annually, the bank said in a statement.
The bonds will be listed on NSE WDM segment. The bond issue, which opens on May 4, will close on May 5.