Kotak Mahindra Bank secures Rs 18.95 billion via infrastructure bonds

27 Jun 2023 CW Team

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

Infrastructure Transport

10 Jul 2026

Uttar Pradesh unveils infrastructure-led growth roadmap at RAHSTA

Mumbai, 9 July 2026: Uttar Pradesh’s ambitious infrastructure-led growth strategy took centre stage on Day 2 of the 16th RAHSTA Expo, where senior government officials outlined how expressways, industrial corridors and technology-driven governance are transforming the state into one of India's most attractive investment destinations.Delivering the keynote address, Srihari Pratap Shahi, IAS, Additional Chief Executive Officer, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), highlighted the state's long-term vision of integrating world-class expressways with industrial dev..

NCW closes PRIME Offices Fund at Rs 40 billion

Nuvama and Cushman & Wakefield Management (NCW) has announced the final close of its flagship PRIME Offices Fund at approximately Rs 40 billion, exceeding its original target of Rs 30 billion following strong investor demand.The fund was launched to provide Indian investors with access to institutional-grade commercial office assets across key office markets in the country. According to NCW, the increase in the fund size was supported by strong investor participation and the availability of investment opportunities in India's office sector.The fund has already committed around 45 per cent ..

Mayfair Housing adopts Autodesk Forma for digital project planning

Mayfair Housing has entered into a three-year strategic partnership with Autodesk to deploy Autodesk Forma, an AI-enabled cloud platform, as part of its digital transformation programme aimed at improving project planning and execution across its development and redevelopment portfolio.The platform will be integrated into the company's Building Information Modelling (BIM) workflow to support architects, planners and project teams during the early stages of design and development. Autodesk Forma combines real-world data, environmental simulations and collaborative workflows to facilitate data-d..