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

Chennai-based public sector lender Indian Bank has raised Rs 5,000 crore through the issuance of long-term infrastructure bonds.

 

The bank said the private placement of long-term infrastructure bonds received an overwhelming response at 3.19 times the total issue size.

 

The bank received a total of 90 bids amounting to Rs 15,925 crore against the total issue size of Rs 5,000 crore (base issue of Rs 2,000 crore with a greenshoe option to retain oversubscription up to Rs 3,000 crore). It accepted bids for Rs 5,000 crore at a coupon of 7.12 per cent per annum.

 

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 exempt 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 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.