Bank of Baroda Raises ₹2,500 Crore through Tier II Bonds, Oversubscribed 2.5 Times

23 Feb 2024 , 11:48 AM

Bank of Baroda successfully raised ₹2,500 Crore through Basel III Compliant Tier II Bonds with a coupon rate of 7.57%.

The bank received a significant response, with 83 bids totaling ₹6,237 Crore, exceeding the base issue size of ₹1,000 Crore. The greenshoe option allowed for oversubscription up to ₹1,500 Crore, resulting in a total issue size of ₹2,500 Crore.

The oversubscription reached around six times the base issue size and approximately 2.5 times the total issue size.

These unsecured, listed, rated, subordinated, non-convertible, taxable, and redeemable bonds have a tenor of 10 years from the deemed date of allotment, with a 5-year call option. The bidding for the bonds occurred on February 21, 2024, and the allotment was finalized on February 22, 2024.

Bank of Baroda, headquartered in Vadodara, Gujarat, is the second-largest public sector bank in India after State Bank of India, boasting 153 million customers, a total business of US$218 billion, and a global presence with 100 overseas offices.

Established by the Maharaja of Baroda, Sayajirao Gaekwad III, on July 20, 1908, in the princely state of Baroda, Gujarat, the bank was nationalized by the Government of India on July 19, 1969, along with 13 other major commercial banks, and designated as a profit-making public sector undertaking (PSU).

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