Bank of India raises Rs 10k cr via infra bonds, Pg15

Key Highlights:

• Bank of India raised Rs 10,000 crore through long-term infrastructure bonds.
• The bonds have a coupon rate of 7.23 percent per annum.

Detailed Insights:

• These infrastructure bonds are designed to finance long-term projects in sectors like transportation, energy, and water management.
• The raised capital will bolster the bank's ability to support infrastructure development, aligning with national priorities for economic growth.
• The issuance of these bonds can improve the bank's asset-liability management by matching long-term assets with long-term liabilities.

Key Concepts Involved:

• Infrastructure Bonds: Bonds issued to raise money for infrastructure projects.
• Coupon Rate: The annual interest rate paid on a bond, expressed as a percentage of the face value.
• Asset-Liability Management: Managing financial risks that arise due to mismatches between assets and liabilities.