Bank of Baroda raises Rs 5000 crore by issuing 10-year infra bonds at 7.3%

Bank of Baroda

Public sector lender Bank of Baroda announced that it has raised Rs 5,000 crore at a coupon rate of 7.30% per annum through the issuance of long-term infrastructure bonds.

The allotment of the bonds took place on August 27, 2024.

The issue received a strong response from investors with a total demand of Rs 15,020 crore from 146 bids. This helped the bank price the issue at a competitive rate of 7.30 percent pa.

“The Bank accepted bids for Rs. 5,000 crore at a coupon of 7.30% p.a. against a total demand received of Rs 15,020 crore,” Bank of Baroda said.

It added, “The bank received a total of 146 bids amounting to Rs 15,020 crore against the total issue size of Rs 5,000 crore (Base issue of Rs 2,000 crore and Greenshoe option to retain oversubscription up to Rs. 3,000 crore). This translates into subscription of 7.5 times the base issue size and three times the total issue size.”

These bonds are senior, unsecured, listed, rated, and taxable bonds, having a fixed maturity of 10 years from the date of allotment. They are rated ‘AAA’ with a Stable outlook by CRISIL and India Ratings.