The National Bank for Financing Infrastructure and Development (NABFID), along with Public Sector Banks (PSUs) and Indian Infrastructure Financiers, aims to generate funds of value. ₹30,000 before elections, according to a report by Economic Times.
While NABFID is planning a bond sale around ₹10,000 crore, the Delhi-Mumbai Expressway is considering picking up value ₹3,000 crores.
LiveMint had earlier reported that the Bank of Baroda, in a notice issued to exchanges on November 18, informed that its capital raising committee has approved an amount of up to. ₹15,000 crore, comprising tier-II debt bonds up to ₹5,000 crore and infrastructure bonds up to Rs 10,000 crore.
Read also | Bank of Baroda to raise up to ₹15,000 crore through infrastructure, tier-II debt bonds. Details here
“Our bank’s Capital Raising Committee in its meeting held today, i.e. 18.11.2023, approved the issue of ₹2,000 crore Tier II/sub-debt bond with the green-shoe option to get another ₹3,000 crore in total ₹5,000 crore (10 years with a call option at the end of 5 years),” the filing stated.
State-owned Canara Bank is said to be planning to issue bonds ₹5,000 crore on November 24. Market experts suggest that these bonds, classified as infrastructure bonds, will have a maturity period of 10 years, ending on November 29, 2033, according to a LiveMint report.
Read also | Canara Bank to raise over ₹5,000 crore through 10-year bonds: Report
“The NABFID bond sale will most likely take place around mid-December, and the security will be of 15-year maturity. After their debut bond sale, the value is worth it. ₹10,000 crore in June, which was through 10-year bonds, they have decided to opt for a longer maturity this time as bonds in the long-term infrastructure space are seeing firm demand from investors,” a source said, quoted by ET. .
Earlier this year, in July, India’s largest lender, State Bank of India (SBI), acquired ₹10,000 crore after issuing 15-year infrastructure bonds with the coupon rate of 7.54 percent. The bank said the proceeds would be directed towards strengthening long-term resources for financing critical infrastructure projects and supporting the affordable housing segment.
Read also | SBI raises ₹10,000 crore through 15-year infrastructure bonds with a coupon rate of 7.54%
The Delhi-Mumbai Expressway has obtained a “letter of comfort” from the National Highways Authority of India for its bond sale of approx. ₹3000 crore, the ET report added.
“Their bonds are likely to be of 15-year maturity with a base size of ₹1,000 crore and a green shoe option of ₹2,000 crores. The matter is likely to materialize in late November or early December,” a source was quoted as saying by ET.
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Updated: 24 Nov 2023, 14:52 IST