Indian Bank Approves ₹5,000 Crore Infrastructure Bond Raise

27 Sep 2024 , 11:41 AM

Indian Bank’s board of directors has approved raising an additional ₹5,000 Crore through long-term infrastructure bonds during its meeting on September 26, 2024. This new approval comes on top of the ₹5,000 Crore already raised earlier in the financial year 2024-25.

The purpose of the bond issuance is to finance and refinance infrastructure and affordable housing projects, supporting the bank’s long-term growth strategy.

The bonds will be issued in one or more tranches, either within the current financial year or in subsequent years, following Reserve Bank of India (RBI) guidelines and other applicable regulations.

In May 2024, Indian Bank had laid out a broader fundraising plan, which included raising up to ₹12,000 Crore through multiple channels.

As part of that plan, Indian Bank aims to raise ₹5,000 Crore in equity capital through Qualified Institutional Placement (QIP), Follow-on Public Offer (FPO), rights issue, or a combination of these methods, subject to the approval of the central government, which holds a 73.84% stake in the bank, and the RBI.

Additionally, the bank plans to raise up to ₹2,000 Crore in additional tier-1 or tier-2 capital by issuing Basel-III compliant AT-1 perpetual bonds or tier-2 bonds in multiple tranches, based on business requirements.