UTI Bank issues bonds to raise CAR

Mumbai: UTI Bank has issued bonds worth Rs 112 crore in the private placement market to raise its capital adequacy ratio (CAR). These bonds have a tenure of 66 months and an annualised coupon rate of 9.80 per cent.

The issue-size is Rs 100 crore and the subscription is for Rs 112 crore. The bank has retained an additional Rs 12 crore as a green-shoe option.

The banks CAR, which had gone below the prescribed level of 9 per cent, was raised recently to 11.5 per cent by issue of preferential shares to CDC Capital partners, a foreign institutional investor. With the Rs 112-crore bonds issue, the banks CAR will improve further.