Bank of Baroda Raises ₹5,000 Crore with 7.30% Bonds

28 Aug 2024 , 02:49 PM

Bank of Baroda has successfully raised ₹5,000 Crore by issuing long-term infrastructure bonds at a 7.30% annual coupon rate. The bond issuance was completed on August 27, 2024.

The bank’s bond issue attracted strong investor interest, with total demand reaching ₹15,020 Crore from 146 bids. The final pricing of the bonds was set at a competitive rate of 7.30% per annum.

At the time of writing, shares of Bank of Baroda is trading at ₹248 which is a 1.11% dip than the previous close. Bank of Baroda has witnessed a 30% gain since the beginning of the year, and 6% gain since the beginning of the year.

The bank accepted bids worth ₹5,000 Crore, surpassing the base issue size of ₹2,000 Crore and including a greenshoe option of ₹3,000 Crore.

The subscription rate for the base issue was 7.5 times, and 3 times for the total issue size. These bonds are senior, unsecured, and listed with a fixed maturity of 10 years. Rated ‘AAA’ with a Stable outlook by CRISIL and India Ratings, these bonds are also taxable.

Bank of Baroda, headquartered in Vadodara, Gujarat, is the third-largest public sector bank in India and ranked 586 on the Forbes Global 2000 list as of 2023.