India New Issue-Bank of India in talks to issue its first-ever infra bonds, bankers say

Bank Of India

01/07/2024 06:45

By Bhakti Tambe and Dharamraj Dhutia
       MUMBAI, July 1 (Reuters) - Bank of India  BOI.NS  is
expected to raise funds via 10-year infrastructure bonds later
this month, following similar sales by other large banks last
week, two merchant bankers said on Monday. 
    This will be Bank of India's first ever infrastructure bond
issuance. The state-run lender may look to raise as much as 50
billion rupees ($599.30 million) through the issue, the bankers
said. 
    The lender is in talks with investors and may invite bids
for the issue by middle of this month. 
    The bank did not respond to a Reuters' email seeking
comment.
    State Bank of India on Wednesday raised 100 billion rupees
through 15-year infrastructure bonds at 7.36% coupon. 
    On Friday, ICICI Bank raised 30 billion rupees through
10-year infra bonds at 7.53% coupon. 
    Bank of India had last tapped the debt market in September
2023, when it raised 20 billion rupees through Basel
III-compliant Tier II bonds maturing in 10 years at 7.88%
coupon.

($1 = 83.4300 Indian rupees)

 (Reporting by Bhakti Tambe and Dharamraj Dhutia; Editing by
Mrigank Dhaniwala)
 ((Dharamraj.dhutia@tr.com))