PNB, Syndicate Bank & ONGC Videsh raise funds

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Mumbai: The country’s second largest public sector lender, Punjab National Bank, may raise up to Rs 300 crore from bonds issue that will open on Wednesday for private placement.

While the PNB Tier I perpetual bonds would be worth Rs 150 crore, the bank would also be keeping an option to get an over-subscription of Rs 150 crore.

“PNB will be raising Rs 150 crore plus green shoe option of Rs 150 crore as Tier I perpetual bonds through private placement,” the bank informed the Bombay Stock Exchange (BSE) in a filing.

The proposed date of opening is Wednesday and closing is January 14, the Delhi-based bank said. PNB’s share was trading at Rs 530.90 on the BSE, down 0.87% over Monday’s close.

Meanwhile, Syndicate Bank has raised Rs 339 crore through private placement of bonds to shore up its capital base. The bonds, unsecured and non-convertible perpetual, will carry a coupon rate of 9.40%, which will be increased by 0.50% if the bond holder decides against redemption at the end of 10th year, the bank informed the BSE.

The bank has come out with a Rs 150 crore issue of these bonds, which opened on January 2. However, it closed the issue on January 3 against the earlier scheduled date of January 9.

ONGC Videsh on Tuesday raised Rs 5,000 crore ($1.03 billion) through a one-year commercial paper issue, two sources familiar with the deal said.