BoI raises Rs 10,000 cr via infra bonds

Bank of India raised Rs10,000 crore through the issuance of long-term infrastructure bonds at an interest rate of 7.23 per cent per annum. The fund-raising was carried out through the NSE Electronic Bidding Provider Platform.

The base issue size was Rs 5,000 crore, with an additional green shoe option of Rs 5,000 crore. The issue received strong investor interest, with the bank getting 83 bids worth Rs 15,305 crore. Out of these, 37 bids amounting to Rs 10,000 crore were accepted.

The bank said the funds raised through these long-term bonds will be used to finance long-term projects in infrastructure sub-sectors and affordable housing, in line with Reserve Bank of India (RBI) guidelines.

However, it clarified that the money is not earmarked for any specific project. Meanwhile, state-owned Union Bank of India has announced a significant reduction in interest rates on select retail loan products, including home loans, vehicle loans and personal loans.