Oriental Bank of Commerce (OBC), a nationalized public sector bank, today said it will raise Rs 10 billion through an issue of tier II bonds on private placement basis.

The company said, ''The issue of Basel III Compliant Tier 2 Bonds of Rs. 10,00,000 each for cash at par aggregating Rs. 10 billion is slated to open on Oct. 21, 2015 (for one day) and the deemed date of allotment shall be Oct. 26, 2015.''

The bonds have been rated AA+ by ICRA and CARE and bear coupon rate of 8.34% p.a. with a tenor of 10 years.               

Shares of the bank gained Rs 0.3, or 0.21%, to settle at Rs 144.70. The total volume of shares traded was 187,199 at the BSE (Tuesday).