Bank of Baroda raises Rs 2,500 cr via Tier-II bonds at 7.57% coupon

Bank of Baroda added that this translates to around six times of the base issue size and around 2.5 times of the total issue size.

State-owned lender Bank of Baroda on February 22 said it has raised Rs 2,500 crore through Basel III Compliant Tier II Bonds at a coupon rate of 7.57 percent.

The bank received a total of 83 bids amounting to Rs 6,237 crore against the base issue size of Rs 1,000 crore and a greenshoe option to retain oversubscription up to Rs 1,500 crore (total issue size of Rs 2,500 crore), it said in a release.

BoB further added that this translates to around six times of the base issue size and around 2.5 times of the total issue size.

These bonds are unsecured, listed, rated, subordinated, non-convertible, taxable, redeemable having a tenor of 10 years from deemed date of allotment with a 5-year call option.

The bidding of the bonds took place on February 21, 2024 while the allotment was done on February 22, 2024.

On February 21, Moneycontrol reported that Bank of Baroda will raise Rs 2,500 crore, which includes Rs 1,500 crore in greenshoe, through bonds.

On February 22, Canfin Homes, Manba Finance, Satya Microcapital, Aditya Birla Finance, Krazybee Services Pvt Ltd, Aye Finance and Ledingkart Finance also raised funds through bonds.