September 26, 2012 / 6:56 AM / 7 years ago

Central Bank of India to raise min 2 bln rupees via perp bonds

MUMBAI, Sept 26 (Reuters) - The Central Bank of India is planning to borrow at least 2 billion rupees ($37.41 million) via perpetual bond at 9.40 percent coupon, two sources with knowledge of the deal said on Wednesday.

Darashaw & Company, A.K.Capital, SBI Capital and Trust Capital are some of the arrangers to the deal, they said.

The bank is planning to raise funds through perpetual bonds as they are considered quasi-equity, giving much-needed support to its tier 1 capital ratio, the sources said.

The perpetual bond has a call option at the end of the 10th year.

The issue is rated AA+ by Crisil and AA by Brickworks. ($1 = 53.4550 Indian rupees) (Reporting by Archana Narayanan; Editing by Jijo Jacob)

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