On December 27, the state-run Punjab National Bank accomplished the raising of Rs 1,153 crore through Basel-III additional Tier-I bonds, sources in the market revealed. The bonds were issued at a competitive coupon rate of 8.55 percent.
Earlier this week, reports surfaced indicating Punjab National Bank’s intention to generate funds up to Rs 3,000 crore through bond issuance. The structured issue included a base size of Rs 500 crore, coupled with a greenshoe option of Rs 2,500 crore, allowing flexibility for additional bond issuance beyond the initial size.
These bonds come with a call option on the fifth anniversary from the deemed date of allotment or any subsequent anniversary, subject to prior approval from the Reserve Bank of India (RBI).
The pay-in date for the bonds was set on December 2, marking the crucial moment when funds and bonds were exchanged between the issuer and investors.
