The State-owned Indian Bank has successfully raised Rs 5,000 crore through long-term infrastructure bonds to support credit growth and infrastructure refinancing. The bank issued these bonds on a private placement basis and received a robust response, with 88 bids totaling Rs 13,680 crore, 2.74 times the issue size.
The bank accepted bids at a coupon rate of 7.24% per annum. The total issue size included a base of Rs 2,000 crore, along with a greenshoe option for an additional Rs 3,000 crore. These bonds, rated AAA with a stable outlook by CRISIL and CARE, have a fixed maturity of 10 years.
As part of the bank’s strategic initiative, the funds raised through these bonds are exempt from maintaining the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR), providing the Indian Bank with greater flexibility in managing its capital for infrastructure projects.
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This move highlights the Indian Bank’s ongoing efforts to bolster its resource base, aligning with the growing demand for credit and infrastructure development in India.
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