BOI will raise up to Rs 50 Bn via infrastructure bonds
ECONOMY & POLICY

BOI will raise up to Rs 50 Bn via infrastructure bonds

Days after the State Bank of India (SBI) issued its infrastructure bonds, public sector lender Bank of India (BOI) intends to raise up to Rs 50 billion using the same instrument. According to BOI authorities, the proposed infra bond issue has been rated "AA+" by rating firm India Ratings. Later this week, the capital raising committee will get together to formalise the fundraising strategy. The state of the market would determine the precise amounts raised and when. The state-run lender looked into infra bonds because of SBI's higher fundraising rates as well as the rising need for funding from renewable energy companies and affordable housing, according to BOI officials. As of the end of March 2024, BOI has Rs 588 billion in infrastructure loans outstanding. SBI has garnered Rs. 100. Regulations pertaining to reserve requirements, such as the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR), do not apply to funds generated through infrastructure bonds. One can use the whole amount for lending activities. Banks are required to retain 4.5% of the funds they collect via deposits with the Reserve Bank of India as CRR. In order to keep SLR, they must also invest around 18% of their income in equities. According to CRISIL Ratings, investments in India's main infrastructure sectors?renewable energy, highways, and real estate?are expected to increase by 38% to Rs 15 trillion in the fiscal years 2025 and 2026 as compared to the preceding two fiscal years.

Days after the State Bank of India (SBI) issued its infrastructure bonds, public sector lender Bank of India (BOI) intends to raise up to Rs 50 billion using the same instrument. According to BOI authorities, the proposed infra bond issue has been rated AA+ by rating firm India Ratings. Later this week, the capital raising committee will get together to formalise the fundraising strategy. The state of the market would determine the precise amounts raised and when. The state-run lender looked into infra bonds because of SBI's higher fundraising rates as well as the rising need for funding from renewable energy companies and affordable housing, according to BOI officials. As of the end of March 2024, BOI has Rs 588 billion in infrastructure loans outstanding. SBI has garnered Rs. 100. Regulations pertaining to reserve requirements, such as the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR), do not apply to funds generated through infrastructure bonds. One can use the whole amount for lending activities. Banks are required to retain 4.5% of the funds they collect via deposits with the Reserve Bank of India as CRR. In order to keep SLR, they must also invest around 18% of their income in equities. According to CRISIL Ratings, investments in India's main infrastructure sectors?renewable energy, highways, and real estate?are expected to increase by 38% to Rs 15 trillion in the fiscal years 2025 and 2026 as compared to the preceding two fiscal years.

Related Stories

Gold Stories

Next Story
Real Estate

Adani begins construction of Dharavi rehabilitation homes

Construction of rehabilitation homes for eligible Dharavi residents has commenced at the 22-acre Matunga railway site, following a Bhoomi Poojan ceremony performed by Pranav Adani, Director, Adani Enterprises (AEL). The project, being implemented by Adani Navbharat Developers (ANDPL), envisages 10 towers comprising 10,432 rehabilitation apartments and 1,379 commercial and industrial units.Under the in-situ rehabilitation scheme, eligible residents will receive homes measuring 350 sq ft. Residents from Sectors 6 and 1 will be accommodated at Matunga first, followed by nearly 4,500 apartments fo..

Next Story
Real Estate

Adani begins construction of Dharavi rehabilitation homes

Construction of rehabilitation homes for eligible Dharavi residents has commenced at the 22-acre Matunga railway site, following a Bhoomi Poojan ceremony performed by Pranav Adani, Director, Adani Enterprises (AEL). The project, being implemented by Adani Navbharat Developers (ANDPL), envisages 10 towers comprising 10,432 rehabilitation apartments and 1,379 commercial and industrial units.Under the in-situ rehabilitation scheme, eligible residents will receive homes measuring 350 sq ft. Residents from Sectors 6 and 1 will be accommodated at Matunga first, followed by nearly 4,500 apartments fo..

Next Story
Equipment

Seven Propel 470 HEV electric tippers go to work on coal haulage in Chhattisgarh

Propel EV, the electric mobility division of Propel Industries and India's No. 1 electric tipper brand, has deployed seven 470 HEV electric trucks with a leading coal-haulage contractor at one of India's largest opencast coal mines in Chhattisgarh. The trucks are in daily operation, moving coal on continuous haul cycles in one of the most demanding applications in Indian mining.Why Electric - and Why CoalCoal haulage runs round the clock: heavy loads, long haul cycles, steep ramps and abrasive dust. It is also where diesel hurts most. Engines run continuously, fuel is the largest single operat..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code