PNB To Raise Rs 3k Cr Via Infra Bonds

New Delhi: State-owned Punjab & Sind Bank plans to raise Rs3,000 crore from maiden infrastructure bonds this month as part of exercise to raise resources to expand loan book.

”We have taken board approval for raising Rs 5,000 crore from infrastructure bonds in tranches. As against that, the bank proposes to raise Rs 3,000 crore in the first tranche,” Punjab & Sind Bank Managing Director and CEO Swarup Kumar Saha said. Asked about the timing of fundraise, he said, it would be tentatively in the third week of this month. The base issue size is going to be Rs 500 crore, with a greenshoe option of Rs 2,500 crore.

In accordance with RBI guidelines, these papers would have a tenure of 10 years. They have been rated as ‘AA’ by domestic rating agencies. The bank proposes to utilise the proceeds in the next two quarters. These bonds would be listed on the National Stock Exchange (NSE) for trading.

The bank is aiming at the credit growth of 13-14 per cent during the current financial year. Domestic investors have shown a lot of interest in such bond issuance by banks and many lenders have exercised this option for raising resources in the recent past.