India’s Bank of Maharashtra, a state-run lender, has accepted bids worth 16.12 billion rupees ($185.7 million) for its infrastructure bonds maturing in 10 years. The bonds will pay an annual coupon of 7.70% to the investors. The bank received coupon and commitment bids from investors earlier in the day. The news was reported by three bankers.
The Bank of Maharashtra is not the only one to issue infrastructure bonds this day. Power Finance Corporation (PFC) has also invited bids for two issues – one with a tenure of 3 years and 2 months with a coupon of 7.42%, and another with a tenure of 6 years and 11 months with a coupon of 7.38%. Both issues have high ratings from rating agencies such as Crisil, Care, and Icra.
In addition to these bank issuances, Axis Max Life Insurance has also issued 10-year bonds with a coupon of 8.34%. Tata Steel has issued 5-year bonds with a coupon of 7.65%, which have been rated AAA by India Ratings.
It is worth noting that the Bank of Maharashtra did not respond to a Reuters email seeking comments. The bank’s infrastructure bonds are considered to be high-yielding, which may attract investors seeking stable returns from the Indian bond market. The country’s bond market has been influenced by recent moves by the Reserve Bank of India to ease borrowing costs, making it attractive for investors to participate in the market.