Bank of India exercises call option on 7.14% Tier II bonds
- Bank of India exercises call option on 7.14% Tier II Bonds Series XV
- Record date fixed for September 15, 2026
- Final principal and interest payment due September 30, 2026
- Redemption extinguishes all bondholder rights and liabilities
*this image is generated using AI for illustrative purposes only.
Bank of India has exercised its call option on the 7.14% Tier II Bonds Series XV, fixing September 15, 2026, as the record date for redemption.
The bank notified stock exchanges on September 3, 2026, regarding the decision to redeem the bonds issued in September 2021. The action aligns with Regulation 15(7) of the SEBI (Issue & Listing of Non-Convertible Securities) Regulations 2021 and Regulation 60 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
Bond Details
The Series XV bonds were originally issued on September 30, 2021, pursuant to an information memorandum dated September 29, 2021. The instruments carry a coupon rate of 7.14% per annum, payable annually.
| Feature | Detail |
|---|---|
| Instrument | Tier II Bonds Series XV |
| Coupon Rate | 7.14% p.a. |
| Issue Date | September 30, 2021 |
| Call Option Date | September 30, 2026 |
| Record Date | September 15, 2026 |
Redemption Terms
Upon payment of the principal amount and broken period interest to bondholders on record as of September 15, 2026, the bank’s liability towards these securities will cease. The final payment is scheduled for September 30, 2026, coinciding with the call option maturity date.
Historical Stock Returns for Bank of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.33% | -0.65% | +5.11% | -15.84% | +28.41% | +143.29% |
Will Bank of India issue new Tier II bonds to replace the redeemed Series XV, and if so, at what coupon rate?
How will the redemption of these 7.14% bonds impact Bank of India's overall cost of capital and net interest margin in the coming fiscal year?
Does this redemption signal a shift in the bank's capital adequacy strategy or its preference for equity versus debt financing?
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