Bank of India shares in focus as lender issues infra bonds 

Shares of Bank of India (BoI) are in focus on Wednesday after the lender raised Rs 10,000 crore via the issue of long-term infrastructure bonds at a coupon rate of 7.23 per cent. Bank of India shares ended 1.33% lower at Rs 140.85 on Tuesday against the previous close of Rs 142.75. Market cap of the firm stood atRs 64,124 crore. 

The bank said the base issue size was Rs 5,000 crore with a green shoe option of Rs 5,000 crore.

BoI received a total of 83 bids amounting to Rs 15,305 crore on the NSE Electronic Bidding Provider Platform. Out of this, the Bank accepted 37 bids amounting to Rs 10,000 crore.

The issue was oversubscribed by 3.06 times against the base issue size of Rs 5,000 crore at the cut-off coupon rate of 7.23% p.a

The lender said funds raised through long-term bonds will be used to fund long-term infrastructure projects in sub-sectors and affordable housing, in accordance with RBI guidelines. Further, the funds raised by the bank through this issue are not meant for financing any particular project.