Punjab & Sind Bank Raises Rs 3,000 Crore with Inaugural Infrastructure Bonds

Punjab & Sind Bank successfully raised Rs 3,000 crore via infrastructure bonds to boost infra lending. The bond issuance, which saw bids amounting to Rs 6,031 crore against a base issue of Rs 500 crore, comes with a 7.74% interest rate and a 10-year tenure, listed on NSE.

Punjab & Sind Bank has successfully raised Rs 3,000 crore through the issuance of its inaugural infrastructure bonds, marking a significant milestone in enhancing its infra lending capabilities.

In an impressive response, the bank received bids totaling Rs 6,031 crore, eclipsing the initial base issue size of Rs 500 crore. These bonds, issued at a coupon rate of 7.74% per annum, have a tenure of 10 years and are set to be listed on the National Stock Exchange for trading.

The infrastructure bonds, favored over AT-1 and Tier-2 bonds for their better pricing, are exempt from regulatory reserve requirements such as CRR and SLR, allowing full deployment of proceeds for lending activities, a trend enthusiastically backed by domestic investors.

(With inputs from agencies.)