Federal Bank raises ₹1,500 crore in maiden infra bond issuance

Federal Bank announced it has raised ₹1,500 crore through its first-ever issuance of redeemable, unsecured long-term infrastructure bonds.

The total issue size comprised a base issue of ₹750 crore, along with a greenshoe option to retain oversubscription up to an additional ₹750 crore.

"The response has been overwhelming," the bank said on November 12, 2024. The bonds were issued on a private placement basis and will be listed on the Stock Exchange (NSE), in compliance with SEBI’s Listing Obligations and Disclosure Requirements.

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The bank’s Credit, Investment, and Raising Capital Committee approved the issuance of these infrastructure bonds during a meeting earlier today, aimed at bolstering the bank’s capital base and supporting long-term infrastructure financing.

The State Bank of India (SBI) is also reportedly preparing to issue its third set of 15-year infrastructure bonds before month-end, aiming to raise up to ₹10,000 crore to meet credit needs in sectors such as steel, roads, and renewable energy, according to sources cited by Reuters.