Bank of India Raises Rs 5,000 Crore via Infrastructure Bonds

State-run Bank of India has raised Rs 5,000 crore through long-term infrastructure bonds with a coupon rate of 7.54% via the NSE Electronic Bidding Platform. The funds will be utilized for long-term infrastructure projects and affordable housing. The initial issue size was Rs 2,000 crore with a green shoe option for an additional Rs 3,000 crore.

State-run Bank of India on Thursday announced that it has successfully raised Rs 5,000 crore via long-term infrastructure bonds.

The bonds, raised at a coupon rate of 7.54%, were auctioned through the NSE Electronic Bidding Platform, according to an official statement.

The raised funds will be directed towards funding long-term projects in infrastructure sub-sectors and affordable housing, although not tied to any specific project. The initial issue size was Rs 2,000 crore with a green shoe option allowing for an additional Rs 3,000 crore. The auction attracted 127 bids totaling Rs 15,318 crore, with 57 successful bidders.

This funding initiative follows a similar move by the country's largest lender, SBI, which recently raised Rs 10,000 crore through infrastructure bonds.