On December 27, PNB intends to issue up to Rs 3,000 crore in Basel-III AT1 bonds

21 Dec 2023 , 03:15 AM

According to news reports, state-owned Punjab National Bank intends to issue Basel-III Additional Tier-I bonds on December 27 in an effort to raise up to Rs 3,000 crore. The issuance has a Rs 2,500 crore greenshoe option in addition to a basic size of Rs 500 crore. Companies can raise extra money or issue more bonds than the base issue size with a greenshoe option.

The bonds feature a call option that can be exercised on the fifth anniversary of the Deemed Date of Allotment or on any subsequent anniversary with the Reserve Bank of India’s (RBI) prior approval. December 2 is the date that the lender has set for the bonds to be paid in. This date represents the bond and money exchange between the issuer and investors.

The bonds have been rated ‘AA+’ by CARE, CRISIL, and India Ratings, with a ‘Stable’ outlook. For these bonds, applications must be for a minimum of Rs 1 crore or multiples of Rs 1 crore.

In the meantime, bonds totaling Rs 6,499.96 crore will be floated on Thursday by the Kerala Infrastructure Investment Fund Board (KIIFB) and the Small Industries Development Bank of India (SIDBI).

According to the term sheets of the institutions, SIDBI will raise Rs 5,000 crore of the total, which includes Rs 3,500 crore in greenshoe, while KIIFB will fund Rs 1,499.96 crore.

The SIDBI bonds will mature on May 14, 2027, or after three years, four months, and twenty-two days. The bonds issued by KIIFB will mature in ten years.

Bonds from SIDBI and KIIFB will be up for bid on the electronic bidding platforms of the National Stock Exchange of India (NSE) and BSE, respectively, between 11 AM and 12 PM and 3:30 PM and 5:00 PM, respectively.

For feedback and suggestions, write to us at [e-mail]