Chennai : Indian Bank, one of India’s leading public sector banks, raised Rs. 5,000 Crores through the issuance of Long-Term Infrastructure Bonds. The Bank received a total of 88 bids amounting to Rs. 13,680 Crores against the total issue size of Rs. 5,000 Crores (Base issue of Rs. 2,000 Crores and Greenshoe option to retain oversubscription up to Rs. 3,000 Crores). The Bank accepted bids for Rs. 5,000 Crores at a coupon of 7.24% p.a. The Bank said that the private placement of long-term infrastructure bonds received an overwhelming response at ~ 2.74 times of the total issue size.
This strategic move is part of Indian Bank’s efforts to mobilize resources for credit growth and refinancing of infrastructure projects. The funds raised through these securities are exempted from regulatory requirement of maintaining Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR).
These bonds are Senior, Rated, Listed, Unsecured, Redeemable, Long Term Fully Paid-up Non-Convertible Bonds, having a fixed maturity of 10 years from the date of allotment. The allotment of these bonds took place today i.e., on 13th September 2024. The bonds are rated AAA with a Stable outlook by CRISIL and CARE.
