Investor rush sees Bank of India raise Rs 10,000 crore through infra bonds

New Delhi: Bank of India on Tuesday announced that it has successfully raised Rs 10,000 crore through the issuance of long-term infrastructure bonds, carrying a coupon rate of 7.23 per cent per annum.

The issue attracted strong investor interest, with total bids worth Rs 15,305 crore against a base issue size of Rs 5,000 crore and a green shoe option of an additional Rs 5,000 crore.

According to the bank, it received 83 bids in total and accepted 37 bids amounting to the full Rs 10,000 crore on offer. The robust response reflects investor confidence in the public sector lender and the demand for long-term, relatively stable debt instruments.

The funds mobilised through the bond issue will be used to finance long-term projects in infrastructure sub-sectors as well as affordable housing, in line with the Reserve Bank of India’s guidelines. The bank clarified that the proceeds are not earmarked for any specific project but will support eligible lending over the long term.

Infrastructure bonds allow banks to raise resources with longer maturities, helping them match assets and liabilities more effectively while supporting critical sectors of the economy. The latest fundraise adds to Bank of India’s efforts to strengthen its balance sheet and expand credit to priority areas such as infrastructure development and housing.
(With PTI inputs)