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
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code