NEWS
Punjab & Sind Bank raises Rs 3,000 cr via infra bonds
Punjab & Sind Bank’s maiden issuance of infra bonds carries a coupon rate of 7.74%; allotment of 10-year infra bonds to successful bidders to be done on Friday.
Punjab & Sind Bank’s maiden issuance of infra bonds carries a coupon rate of 7.74%; allotment of 10-year infra bonds to successful bidders to be done on Friday.
State-owned Punjab & Sind Bank has raised Rs 3,000 crore through issuance of maiden infrastructure bonds.
The bank has decided to accept the 10-year infrastructure bonds at a coupon rate of 7.74%.
In accordance with RBI guidelines, these papers would be listed on the National Stock Exchange (NSE) for trading.
The bank received total bids of Rs 6,031 crore against the base issue size of Rs 500 crore, Punjab & Sind Bank said in a regulatory filing.
These unsecured, subordinated, redeemable, non-convertible, taxable, fully paid-up long term bonds in the nature of debentures have a face value Rs 1 lakh each, it said.
Allotment of bonds to successful bidders would be done on Friday, it added.
The advantage of infrastructure bonds is that they are exempt from regulatory reserve requirements such as Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). So, infrastructure bond proceeds can be fully deployed for lending activities.
Banks have been preferring infrastructure bonds over AT-1 and Tier-2 bonds, as they are better priced.
