PNB plans to raise up to Rs 3,000 crore through Basel-III AT1 bonds on December 27

The bonds of SIDBI will mature in 3-year-4-month-22-day or on May 14, 2027. Meanwhile, KIIFB’s bonds will mature in 10 years.

State-owned Punjab National Bank is planning to raise up to Rs 3,000 crore by issuing Basel-III Additional Tier-I bonds on December 27, according to market sources. The issue comprises a base size of Rs 500 crore, with a greenshoe option of Rs 2,500 crore. A greenshoe option allows companies to issue more bonds or raise more funds than the base issue size.

The bonds have a call option on the fifth anniversary from the Deemed Date of Allotment or any anniversary date thereafter with the prior approval of the Reserve Bank of India (RBI). The lender has set a pay-in date for the bonds on December 2. This is the date when the exchange of funds and bonds takes place between the issuer and investors.

The bonds have been rated ‘AA+’ with a ‘Stable’ outlook by India Ratings, CARE and CRISIL. The minimum application size for these bonds is Rs 1 crore and in multiples of Rs 1 crore.

Meanwhile, on Thursday Small Industries Development Bank of India (SIDBI) and the Kerala Infrastructure Investment Fund Board (KIIFB) will float bonds aggregating worth Rs 6,499.96 crore.

Of the total amount, SIDBI will raise Rs 5,000 crore, which includes Rs 3,500 crore in greenshoe, and KIIFB will raise Rs 1,499.96 crore, as per the term sheets of the institutions.

The bonds of SIDBI will mature in 3-year-4-month-22-day or on May 14, 2027. Meanwhile, KIIFB’s bonds will mature in 10 years.

Bidding for SIDBI’s bonds will take place between 11 AM and 12 PM and KIIFB’s bonds between 3:30 PM and 5:00 PM, on the electronic bidding platform of the National Stock Exchange of India (NSE) and BSE, respectively.