Axis Bank to Raise Funds via Infrastructure Bonds

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Axis Bank to Raise Funds via Infrastructure Bonds

Team Finance Saathi

04/Mar/2024

Learn about Axis Bank's plans to raise funds through infrastructure bonds, joining other banks in financing long-term development projects.

Axis Bank is gearing up to enter the infrastructure bond market for the first time in over two years, according to two banking sources. The private lender aims to raise approximately 40 billion rupees ($482.70 million) through 10-year bonds and is expected to issue invitations for bids before the week's end.

While Axis Bank has not officially commented on the bond sale, infrastructure bonds are typically utilized to fund long-term development projects, contributing to the growth of vital infrastructure across the country.

This move sees Axis Bank joining the ranks of Kotak Mahindra Bank and Bank of Baroda, both of whom have recently raised funds through infrastructure bonds in the current quarter.

The infrastructure bond market has seen substantial activity this financial year, with banks, excluding financial institutions, raising over 544 billion rupees through bond sales. This figure represents a significant increase from the 296 billion rupees raised in the previous fiscal year.

Notably, Axis Bank had previously raised funds through infrastructure bonds, securing 26 billion rupees in December 2021 for bonds maturing in 10 years. Additionally, in December 2022, the bank raised 120 billion rupees by selling Basel III-compliant Tier-II bonds with a 10-year maturity period and a 7.88% coupon.

As Axis Bank prepares to embark on this fundraising venture, its participation underscores the continued interest and activity within the infrastructure bond market, contributing to the financing of essential development projects across India.

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Axis Bank to Raise Funds via Infrastructure Bonds

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