Bank of India raises Rs 5,000 crore at 7.54% through 10-year infra bonds

Bank of India (BoI) successfully raised Rs 5,000 crore through 10-year infrastructure bonds at a coupon rate of 7.54%. The issue, which initially aimed at Rs 2,000 crore, included a green shoe option that expanded it to Rs 5,000 crore due to robust demand. The funds raised will support long-term projects in infrastructure and affordable housing, aligning with RBI guidelines. \r

This move follows similar bond issuances by other banks like Canara Bank and SBI, reflecting a trend among banks to capitalize on lower long-term interest rates amid slower deposit growth. Infrastructure bonds allow banks to fund projects without incurring SLR and CRR requirements, optimizing liquidity management strategies effectively.