The non-banking financial company is planning a bond sale with an issue size of ₹1,600 crore and a greenshoe option of ₹200 crore, market sources said. “Given the size of the sale and the 10-year maturity of the bonds, it is likely that investors such as large insurance companies would step in for the issuance,” a source said. The bonds are scheduled to mature on September 13, 2033.
Separately, Bank of India is likely to tap debt capital markets to raise up to ₹2,000 crore through the issuance of tier-II bonds, sources said. The state-owned bank’s bonds will likely be of 10-year maturity with a call option on or after the fifth year of allotment.
Submission of bids is scheduled from 10 am to 12 pm on September 13, with the bond sale having a base size of ₹1,000 crore and a greenshoe option of ₹1,000 crore, sources said.
Bank of India’s bonds are rated AA+ with a stable outlook by CRISIL and AA+ with a positive outlook by Acuite, they said.
With demand for credit outstripping growth in deposits, banks face pressure to mobilise funds. The latest RBI data showed that as of August 25, bank credit growth was at 19.8% on-year while deposit growth was at 13.2%.
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