Bank of India to Consider Long-Term Infrastructure Bond Issuance

Bank of India's Board of Directors is set to meet on January 23, 2025, to consider a proposal for raising funds through the issuance of long-term infrastructure bonds. This move aligns with the bank's strategy to bolster its capital base and support infrastructure lending.The bank has been actively tapping the bond market, having raised Rs 10,000 crore through infrastructure bonds in the current fiscal year. In July 2024, it successfully raised Rs 5,000 crore via 10-year infra bonds at a 7.54% coupon rate.This potential new issuance comes amid a broader trend of public sector banks leveraging infrastructure bonds to fund long-term projects while benefiting from exemptions on regulatory reserve requirements like SLR and CRR.

Source: Bank of India Regulatory Filing