Which Bank has announced the listing of the Banks debut US 600millionbondissueunderitsmaidenUS600 million bond issue under its maiden US 1 billion medium-term note (MTN) bond on countrys first international exchange BSEs IndiaINX at the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which Bank has announced the listing of the Bank’s debut US 600millionbondissueunderitsmaidenUS600 million bond issue under its maiden US 1 billion medium-term note (MTN) bond on country’s first international exchange BSE’s IndiaINX at the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar?

A	Federal Bank
B	Kotak Mahindra Bank
C	Axis Bank
D	Yes Bank

Explanation:

Detailed explanation-1: -Public sector banks largely issue tier I bonds, private lenders preferred Tier II bonds (as Tier I is costlier than Tier II) and both issued infrastructure bonds. Within overall bond issuances of Rs 91, 500 crore in nine months of FY23, Tier-II issuance reached an all-time high of Rs 47, 200 crore.

Detailed explanation-2: -By buying a bond, you’re giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year. Unlike stocks, bonds issued by companies give you no ownership rights.

Detailed explanation-3: -Commercial banks, like other business entities, too have liquidity needs. They issue bonds to get more capital to invest money.

Detailed explanation-4: -A medium-term note (MTN) is a note that usually matures in five to 10 years.

There is 1 question to complete.