Photo credit: Ruby Sharma
India’s state-run bank has raised Rs 5,000 crore by issuing long-term infrastructure bonds.
The bank received a total of 88 bids worth Rs 13,680 crore against a total issue size of Rs 5,000 crore (base issue of Rs 2,000 crore and a stock option to maintain oversubscription up to Rs 3,000 crore). The bank accepted bids worth Rs 5,000 crore at a coupon rate of 7.24 per cent per annum. The bank said the private placement of long-term infrastructure bonds received an overwhelming response of 2.74 times the total issue size.
This strategic move is part of Bank of India’s efforts to mobilise resources for credit growth and refinancing of infrastructure projects. The funds raised through these securities are exempt from the regulatory requirement of maintaining Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR).
These bonds are senior, rated, quoted, unsecured, redeemable, long-term, fully paid and non-convertible bonds with a fixed maturity of 10 years from the date of allotment. The allotment of these bonds took place on Friday. The bonds are rated AAA with a stable outlook by CRISIL and CARE.
First published: September 13, 2024 | 10:34 PM IS
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