India New Issue-Punjab National Bank sets 8.75% coupon on perpetual bonds - bankers

CARE Ratings

24/03/2023 06:58

MUMBAI, March 24 (Reuters) - India's Punjab National
Bank  PNBK.NS  has set a coupon of 8.75% on its Basel
III-compliant additional Tier-I perpetual bonds, three merchant
bankers said on Friday.
    The state-run lender has accepted bids worth 9.74 billion
rupees ($118.41 million) for this issue, for which it had
invited coupon and commitment bids from bankers and investors
earlier in the day. 
    The issue had a base size of 5 billion rupees and a
greenshoe option to retain an additional 15 billion rupees.  
    The bonds are rated AA+ by CARE Ratings and India Ratings,
and have a call option at the end of the fifth year from the
allotment date. The issue will be settled next week.
    In December, the lender had raised 5.82 billion rupees
selling additional Tier-I bonds at 8.40% coupon, with a call
option at end of five years.

     ($1 = 82.2550 Indian rupees)

 (Reporting by Bhakti Tambe and Dharamraj Dhutia)
 ((Bhakti.Tambe@thomsonreuters.com; Reuters Messaging:
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