Bank of India (BOI) has successfully raised ₹2,690 crore through 10-year infrastructure bonds at an interest rate of 7.50%. This marks the bank’s third infrastructure bond issuance in the current financial year.
The funds were raised via the NSE Electronic Bidding Platform. Initially, the bank had planned to raise ₹1,500 crore, with an option to increase it up to ₹3,500 crore. However, the offering attracted significant investor interest, receiving 94 bids totaling ₹8,845 crore—nearly six times the base issue size.
After evaluating the bids, the bank accepted 26 bids, finalizing the issuance at ₹2,690 crore. The money raised from these bonds will be used to finance infrastructure projects and affordable housing in accordance with Reserve Bank of India (RBI) guidelines. While no specific projects have been earmarked, the funds will contribute to the overall growth of key sectors.
BoI’s Fundraising History
Over the past nine months, Bank of India has raised a total of ₹12,500 crore through multiple bond issuances. This includes:
- ₹2,500 crore via Basel III Tier-II bonds in September at an interest rate of 7.49%.
- ₹5,000 crore through infrastructure bonds in July at 7.54%.
- ₹5,000 crore via another infrastructure bond issuance in November at 7.41%.
RBI’s Liquidity Measures
Meanwhile, the Reserve Bank of India (RBI) has announced steps to boost liquidity in the banking system. Last month, the central bank decided to inject ₹1,10,000 crore through open market purchases of government securities and a variable rate repo auction. The decision was made after assessing the current liquidity and financial conditions.
With this latest bond issuance, Bank of India strengthens its position in long-term funding, contributing to infrastructure growth and economic development.
