CURRENT AFFAIRS

Detailed explanation-1: -The base issue size for ICICI Bank’s infra bonds was Rs 1,000 crore with green shoe option of Rs 4,000 crore.

Detailed explanation-2: -UCO Bank mulls AT1 offering to raise Rs 1,000 cr In December 2022, it had raised Rs 10,000 crore through a maiden issue of 10-year infrastructure bonds carrying a coupon of 7.51 per cent.

Detailed explanation-3: -“The infrastructure bonds issued by banks provide them funds at competitive costs which they can specifically utilise for long-term infrastructure projects. Going forward, more banks are expected avail of this route to mobilise resources for infrastructure funding.”

Detailed explanation-4: -Infrastructure bonds are borrowings to be invested in government funded infrastructure projects within a country. They are issued by governments or government authorised Infrastructure companies or Non- Banking Financial Companies.

Detailed explanation-5: -Bond type – Tax benefits under Section 80CCF can be availed only through investment in certain tax saving bonds, issued by banks or corporations after gaining permission from the government. Maximum amount – The maximum deduction permitted under Section 80CCF is Rs 20,000 and investments over this amount are taxable.