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Issuer

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Objects of
Issue
Listing

the

Instrument

Nature and status
of
Bonds

Issuance Mode
Tenor
Convertibility
Face Value
Credit Rating
Mode of Issue
Security
Coupon
Coupon Reset
Coupon Type
Interest Payment
Frequency
Coupon Payment
Dates

Bank of India(“BOI”/the “Bank”/the“ Issuer”)
Rs. 1250 crores plus Green shoe option of Rs. 1250 Crores
Augmenting Additional Tier1 Capital and over all capital of the Bank for strengthening its
capital adequacy and for enhancing its long-term resources
Proposed on the Wholesale Debt Market (WDM) Segment of NSE
Unsecured, Non-Convertible Perpetual Additional Tier 1 Basel-III Compliant Bonds in the
nature of Debentures
Unsecured Additional Tier I Bonds
Claims of the investors in this instrument shall be:
(i)
Superior to the claims of investors in equity shares and perpetual non-cumulative
preference shares;
(ii)
Subordinate to the claims of all depositors and general creditors &subordinated debt
of the bank.
(iii) Is neither secured nor covered by a guarantee of the Issuer nor related entity or
other arrangement that legally or economically enhances the seniority of the claim
vis-à-vis bank creditors.
In Demat mode only
Perpetual
Non-Convertible
Rs. 10,00,000/- (Rupees Ten Lakhs) per Bond.
“Brickwork AAA/Stable” byBrickwork Rating
Private Placement
Unsecured
11.00% P.A. Payable Annually
Not Applicable
Fixed
Annual (The interest shall not be cumulative)
At the Anniversary of Deemed Date of Allotment

even if adequate Coupon Discretion . (iii) Cancellation of discretionary payments shall not be an Event of Default. the excess amount paid on application will be refunded to the applicant along with the interest on refunded money. Such interest shall be paid from the date of realization of cheque (s)/Demand Draft (s) and in case of RTGS/other means of electronic transfer interest shall be paid from the date of receipt of funds to one day prior to the Deemed Date of Allotment. these payments will be extinguished and Bank shall have no obligation to make distributions/payments in kind as well. 2013) (i) The Bank has Full Discretion at all times to cancel coupon distributions/payments. In the event the Record Date falls on a day which is not a business day. (ii) Bank shall have full access to cancelled payments to meet obligations as they fall due. Reference date for payment of interest/ repayment of principal which shall be the date falling 15 days prior to the relevant Interest Payment Date on which interest is due and payable. or any Statutory modification or re-enactment as applicable) will be paid to all the applicants on the Application Money for the Bonds. (v) Coupons shall be paid out of distributable items as per prevailing RBI guidelines and Indian Laws. the interest on Application Money will be paid along with the refund orders. (subject to deduction of Income Tax under the Provisions of the Income Tax Act 1961. Where the entire subscription amount has been refunded.a.Interest on application money Record Date Computation of Interest Interest at the rate of 11 %p. Actual/ Actual(as per SEBI Circular no CIR/IMD/DF/18/2013 dated October 29. (iv) Cancellation of distributions/payments will not impose restrictions on the Bank. This means that interest missed in a year will not be paid in future years. their declaration should be precluded to that extent. the unpaid amount will not be paid in future years. in relation to distributions to common shareholders. The interest on Application Money will be computed as per Actual/Actual Day count convention. the next business day will be considered as the Record Date. Coupon on this Instrument shall not be paid out of retained earnings / reserves. (vi) The interest shall not be cumulative. it is clarified that if the payment of coupons on perpetual debt instrument (PDI) is likely to result in losses in the current year. even if adequate profit is available and the level of CRAR conforms to the regulatory minimum. Such interest would be paid on all the valid applications including the refunds. Where an applicant is allotted lesser number of bonds than applied for. If coupon is paid at a rate lesser than the prescribed rate. Income Tax at Source (TDS) will be deducted at the applicable rate on interest on Application Money. On cancellation of distributions/payments. As regards ‘distributable items’.

nor will they impede / hinder: (i) The Re-Capitalization of the Bank. In the event the holders of these Instrument are not paid dividend/coupon. they shall not impede the full discretion that Bank has at all times to cancel distributions/payments on these Instruments. (ii) The Bank’s right to make payments on other instruments. Here. (i) The instrument has run for at least ten years (ii) The prior approval of RBI (Department of Banking Operations & Development).. (iii) The instrument is replaced with capital of the same or better quality and the replacement of this capital is done at conditions which are sustainable for the income capacity of the bank. minimum refers to Common Equity Tier 1 of 8% of RWAs (including capital conservation buffer of 2. (iii) The Bank’s right to making distributions to shareholders for a period that extends beyond the point in time that coupon /dividends on these Instruments are resumed (iv) The normal operation of the bank or any restructuring activity (including acquisitions/disposals). Here. (vii) Dividend Stopper Clause Put Option Call Option . Distributions/payments by the Bank will be subject to the Minimum Capital Conservation Ratios the Bank must meet at various levels of the Common EquityTier1capital ratios after including the current periods retained earnings(subject to RBI guidelines)as and the minimum Capital Requirements to be complied by the Bank at all times (Consolidated &Solo Level) Dividend Stopper Clause will not be applicable to these instruments. Not Applicable The exercise of Call Option by the Bank will be subject to ALL of the below mentioned conditions.replacement of the capital can be concurrent with but not after the instrument is called.5% of RWAs including any additional capital requirement identified under Pillar 2.5% of RWAs) and Total Capital of 11.profit is available and the level of CRAR conforms to the regulatory minimum. OR (iv) The bank demonstrates that its capital position is well above the minimum capital requirements after the call option is exercised.

The bank demonstrates that its capital position is well above the minimum capital requirements after the repurchase / buy-back / redemption. (iii) Principal of the instruments may be repaid (e. (iii) subordinated to the claims of depositors. National Securities Depository Limited and Central Depository Services (India) Limited National Stock Exchange of India Limited 10 Bond and in multiples of 1 Bond thereafter Payment of interest and repayment of principal shall be made by way of credit through direct credit/ NECS/ RTGS/ NEFT mechanism.Exercise of Calls Options in Tax Events and Regulatory Event Depository Proposed Listing Minimum Application and in multiples of Debt securities thereafter Settlement Seniority of Claim (i) Bank may call the instrument due to the occurrence of Tax events or Regulatory event only if permitted by RBI. (ii) RBI may permit such type of calls only if it is convinced that the bank was not in a position to anticipate these events at the time of issuance of these instruments as per RBI Master circular on Basel III – Capital Regulations dated July 01. 2014. or b. (iv) Banks may repurchase / buy-back / redemption only when: a. through repurchase or redemption) only with prior approval of RBI (Department of Banking operations and Development). (ii) superior to the claims of investors in perpetual non-cumulative preference shares issued by the Bank. if any.g. They replace the such instrument with capital of the same or better quality and the replacement of this capital is done at conditions which are sustainable for the income capacity of the Bank. The claims of the investors in Instruments being issued for inclusion in Additional Tier I capital shall be: (i) Superior to the claims of investors in equity shares of the Bank. general creditors and subordinated debt of the bank and (iv) is neither secured nor covered by a guarantee of the issuer nor related entity or other arrangement that legally or economically enhances the seniority of the claim vis-à-visbank creditors .

enable it to continue as a going concern. if any. TRUST INVESTMENT ADVISORS PRIVATE LIMITED . Such a decision would invariably imply that the write off consequent upon the trigger event must occur prior to any public sector injection of capital so that the capital provided by the public sector is not diluted.5% of RWAs (effective before March 31. (b) CET1 of 6. as determined by the Reserve Bank of India. a ‘non-viable bank’ will be: A bank which. is necessary. 2019). may no longer remain a going concern on its own in the opinion of the Reserve Bank of India unless appropriate measures are taken to revive its operations and thus. without which the bank would become non-viable. and c) Partially or fully reduce coupon payment on the instrument. A pre-specified trigger shall be (a) CET1 of 5. The PONV Trigger event is the earlier of: (i) decision that a write-down. The write down will inter alia have the following effect: a) Reduce the claim of the instrument in liquidation. owing to its financial and other difficulties. (i) Decision to Write Down Point of Nonviability (PONV) Trigger For this purpose. The trigger at PONV will be evaluated both at consolidated and solo level and breach at either level will trigger write off. without which the Bank would have become non-viable. as determined by the relevant authority. Treatment Insolvency Arranger in The instrument cannot contribute to liabilities exceeding assets if such a balance sheet test forms part of a requirement to prove insolvency under any law or otherwise. b) Reduce the amount re-paid when a call is exercised. 2014 The decision of permanent write-down exercised shall be exercised across all investors of these Instruments. (iii) The aggregate amount of write down for all these instruments on breaching the trigger level shall be at least the amount needed to immediately return the Bank’s CET-1 Ratio to the trigger level. or if this is not sufficient. or equivalent support. the full principle value of these instruments.125% of RWAs for all instruments. (ii) The Write down must generate CET-1 under applicable Indian Accounting Standards equal to write down amount. net of taxes.Loss Absorbency at the occurrence of an Objective Pre-Specified Trigger or Point of Non Viability Trigger Objective PreSpecified Trigger Point for Loss Absorbency Clause These Instruments are subject to principal loss absorption through a permanent write-down mechanism which allocates losses to the instrument at `a objective pre-specified trigger point’ and or at a Point of Non Viability Trigger. thereafter which is as per Annex 16 of RBI Master circular on Basel-III Capital Regulations July 01. and (ii) the decision to make a public sector injection of capital.