Andhra Bank set to raise Rs1,000 crore through infra bond issue
Sale of infrastructure bonds according to RBI's new guidelines; funds to be used for affordable housing projects
Mumbai: Andhra Bank is set to raise Rs1,000 crore by selling long-term infrastructure bonds under the new guidelines issued by Reserve Bank of India (RBI) on 15 July.
The funds will be used to fund infrastructure and affordable housing projects.
Banks are exempt from setting aside mandatory requirements like cash reserve ratio (CRR) and statutory liquidity ratio (SLR) on these issues. The Andhra Bank issue has been rated “AA+/Stable" by ratings agency, Crisil Ratings.
Andhra Bank follows private sector lender ICICI Bank Ltd, which had stated that it is raising Rs1,000 crore through a private placement of infrastructure bonds under the RBI’s new guidelines.
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