+
Kotak Mahindra Bank secures Rs 18.95 billion via infrastructure bonds
ECONOMY & POLICY

Kotak Mahindra Bank secures Rs 18.95 billion via infrastructure bonds

Kotak Mahindra Bank, a private-sector lender, announced that it had successfully raised Rs 18.95 billion by issuing seven-year infrastructure bonds. The purpose of these bonds was to provide funding for various sectors such as power, roads, and housing. The interest rate, or coupon, for the bonds was fixed at 7.55 percent. The bond issuance consisted of two parts: a base size of Rs 12.50 billion and a greenshoe option to retain an additional Rs 12.50 billion. The bank received bids totaling Rs 36.05 billion, but it accepted Rs 18.95 billion at the specified interest rate. This information was conveyed in a statement released by the bank. It is important to note that these bonds were given a rating of "AAA/Stable" by CRISIL, indicating their high quality and stability.

The bank's board of directors approved a plan to raise funds through bonds, with an upper limit of Rs 70 billion. These infrastructure bonds are considered long-term instruments and must have a minimum maturity period of seven years. Bond market dealers pointed out that the bank obtained a favourable price for its bonds due to a 7-8 basis points increase in the yield of government bonds over the past week. The majority of investors in the bonds were insurance companies and other institutions. Data from JM Financial Services revealed that the total funds raised by banks through infrastructure bonds decreased from around Rs 272 billion in FY22 to Rs 199 billion in FY23. State Bank of India (SBI) raised Rs 100 billion through infrastructure bonds, while ICICI Bank raised Rs 71 billion.

Also read:
Adani JV to finance data centres in Noida and Chennai
Odisha approves 15 key rural projects


Kotak Mahindra Bank, a private-sector lender, announced that it had successfully raised Rs 18.95 billion by issuing seven-year infrastructure bonds. The purpose of these bonds was to provide funding for various sectors such as power, roads, and housing. The interest rate, or coupon, for the bonds was fixed at 7.55 percent. The bond issuance consisted of two parts: a base size of Rs 12.50 billion and a greenshoe option to retain an additional Rs 12.50 billion. The bank received bids totaling Rs 36.05 billion, but it accepted Rs 18.95 billion at the specified interest rate. This information was conveyed in a statement released by the bank. It is important to note that these bonds were given a rating of AAA/Stable by CRISIL, indicating their high quality and stability. The bank's board of directors approved a plan to raise funds through bonds, with an upper limit of Rs 70 billion. These infrastructure bonds are considered long-term instruments and must have a minimum maturity period of seven years. Bond market dealers pointed out that the bank obtained a favourable price for its bonds due to a 7-8 basis points increase in the yield of government bonds over the past week. The majority of investors in the bonds were insurance companies and other institutions. Data from JM Financial Services revealed that the total funds raised by banks through infrastructure bonds decreased from around Rs 272 billion in FY22 to Rs 199 billion in FY23. State Bank of India (SBI) raised Rs 100 billion through infrastructure bonds, while ICICI Bank raised Rs 71 billion. Also read: Adani JV to finance data centres in Noida and Chennai Odisha approves 15 key rural projects

Related Stories

Gold Stories

Next Story
Infrastructure Transport

MMRDA Targets Completion of Projects by December 2028

The Mumbai Metropolitan Region Development Authority (MMRDA) is targeting the completion of all its ongoing infrastructure projects by December 2028, a year ahead of its December 2029 deadline, Metropolitan Commissioner Dr Sanjay Mukherjee has said.Speaking at the sixth edition of the Real Estate & Infrastructure Investors' Summit (REIIS) 2026 in Mumbai, Mukherjee said the authority was developing an integrated network of roads, tunnels, sea links and Metro corridors under its broader vision of “Mumbai in 59 Minutes”.The objective is to improve east-west and north-south connectivity an..

Next Story
Building Material

High-Performance Façades Gain Ground in Indian Buildings

High-performance façades are gaining greater importance in Indian architecture as developers and architects increasingly focus on energy efficiency, thermal comfort and building performance, according to Shankar Fenestrations & Glasses.The company said modern façade systems are increasingly being considered as part of a building's overall performance strategy rather than being used primarily as aesthetic elements.High-performance glass, curtain wall systems and structural glazing can contribute to thermal regulation, solar control, daylight management and indoor comfort. Their growing ad..

Next Story
Technology

SPML Infra's 104.4 kWh BESS Battery Pack Clears Global Tests

SPML Infra has announced that its proprietary 104.4 kWh Battery Energy Storage System (BESS) battery pack has completed key international safety, performance and transportation testing and certification requirements, marking a step towards its commercial deployment.Developed under the company's own intellectual property, the battery pack has completed requirements under UL9540A, IEC 62619, IEC 63056, IEC 60730, IEC 61000-6-2, IEC 61000-6-4 and UN38.3 standards.The testing covers areas including thermal runaway safety, battery performance, system functional safety, electromagnetic compatibility..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code