Axis Bank set to tap infrastructure bond market after 2 years: Report

Axis Bank is set to tap the infrastructure bond market to raise funds for the first time in more than two years, two bankers said on Monday.
 

"The private lender will raise around 40 billion rupees ($482.70 million) through 10-year bonds and will invite bids for the bond issue before the end of this week," one of the bankers said.
 

Axis Bank did not immediately reply to Reuters' request for comment and is yet to announce the bond sale.
 

Infrastructure bonds are issued to finance long-term development projects.
 

Axis Bank will join the likes of Kotak Mahindra Bank and Bank of Baroda, who raised funds via infrastructure bonds this quarter.

Banks, excluding financial institutions, have raised over 544 billion rupees through the sale of infrastructure bonds in this financial year, nearly double of 296 billion rupees raised in the previous fiscal.
 

Axis Bank had raised 26 billion rupees through infrastructure bonds maturing in 10 years in December 2021. In December 2022, the bank raised 120 billion rupees selling Basel III-compliant Tier-II bonds maturing in 10 years at a 7.88% coupon.