Infrastructure Bonds:
State-run Bank of India (BoI) has raised ₹10,000 crore through infrastructure bonds, witnessing strong investor demand as bids worth over ₹15,300 crore were received against a base issue size of ₹5,000 crore.Infrastructure Bonds are long-term debt securities — a way for governments or companies to borrow money from investors to fund large infrastructure projects (like roads, airports, power plants, railways, water systems, etc.).
When someone invests in these bonds, they’re essentially lending money to the issuer and in return receive fixed interest (coupon) payments and your principal back at maturity. (RBI) permits banks to issue infrastructure bonds with a minimum maturity of seven years, with typical terms often extending to 10-15 years. Public Sector Banks (PSBs) remain the dominant issuers of infrastructure bonds due to regulatory incentives.
