Indian Bank raises Rs 5,000 crore via long-term infrastructure bonds

State-run Indian Bank has raised Rs 5,000 crore through the issuance of long-term infrastructure bonds.

The bank received a total of 88 bids amounting to Rs 13,680 crore against the total issue size of Rs 5,000 crore (base issue of Rs 2,000 crore and a greenshoe option to retain oversubscription up to Rs 3,000 crore). The bank accepted bids for Rs 5,000 crore at a coupon rate of 7.24 per cent per annum. The bank said that the private placement of long-term infrastructure bonds received an overwhelming response at 2.74 times the total issue size.

This strategic move is part of Indian Bank's efforts to mobilise resources for credit growth and refinancing of infrastructure projects. The funds raised through these securities are exempted from the 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 on Friday. The bonds are rated AAA with a stable outlook by CRISIL and CARE.