Public sector lender Bank of Baroda announced on September 9 that it has raised Rs 5,000 crore at a coupon rate of 7.26 percent per annum through the issuance of long-term 10-year infrastructure bonds.
The allotment of the bonds took place on September 9, 2024.
The issue received a strong response from investors with a total demand of Rs 14,215 crore from 105 bids. This helped the bank price the issue at a competitive rate of 7.26 percent pa.
"The Bank received a total of 105 bids amounting to Rs. 14,215 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 times of the base issue size and ~2.8 times of the total issue size," BoB said in a press release.
With this issuance, BoB said it has further tightened the pricing by four (4) bps from its previous issuance which was issued on August 26, 2024.
On August 26, BoB had also raised Rs 5,000 crore by issuing 10-year infra bonds at 7.3 percent.
These bonds are senior, unsecured, listed, rated, taxable Bonds, having a fixed maturity of 10 years from the date of allotment.
The bonds are rated ‘AAA’ with a Stable outlook by CRISIL and India Ratings.
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