Bank of India has successfully mobilised ₹10,000 crore by issuing Long-Term Infrastructure Bonds (LIIBs), tapping into investor appetite for stable, tax-efficient investment instruments while supporting funding for key infrastructure projects. The exercise was carried out under the framework set by the government to boost long-term capital for infrastructure development across the country.
Key Highlights
- Bank of India mobilises ₹10,000 crore through long-term infrastructure bond issuance
- Funds to support infrastructure lending and strengthen long-term capital base
The bonds, which are typically backed by sovereign guarantees, offer investors an attractive avenue for earning steady returns along with tax benefits under the prevailing Income Tax laws. By leveraging this instrument, Bank of India strengthened its resource base and reinforced its commitment to financing priority sectors, particularly those involving large infrastructure outlays.
Market observers noted that the strong subscription to the bond issuance highlighted confidence among investors in banks’ role as key financiers of infrastructure. The inflows from the LIIBs are expected to be deployed in sectors such as transport, power, telecom, and other areas critical to economic growth.
The successful raising of funds comes at a time when Indian banks are increasingly focusing on diversifying their liabilities and enhancing long-term lending capacities. Institutions like Bank of India have been actively aligning their balance sheets to better support the government’s infrastructure agenda while managing asset-liability profiles prudently.
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With infrastructure seen as a core driver of economic expansion, the mobilisation of long-term funds through bonds is likely to become a recurring feature of bank financing strategies. The move also aligns with broader policy objectives aimed at strengthening India’s physical and financial infrastructure networks.
