Bank of Baroda Raises Rs 5,000 Crore via Infrastructure Bonds at 7.68% Coupon Rate

30 Nov 2023 , 03:20 PM

On November 30, the Bank of Baroda successfully raised Rs 5,000 crore through infrastructure bond issuance at a coupon rate of 7.68 %, conducted on a private placement basis. The bonds are set to be listed after three days, making them available for trading. The minimum application size for these bonds is Rs 1 lakh, available in multiples of the same amount.

CRISIL’s ratings for these bonds factor in expectations of strong government support for Bank of Baroda, maintaining adequate capitalization with Tier I and overall capital adequacy ratio (under Basel III) at 13.19 % and 15.30 %, respectively, as of September 30, 2023.

Bank of Baroda had previously announced on November 18 its plans to raise up to Rs 15,000 crore via bonds. This includes Rs 5,000 crore through the issuance of tier-II debt bonds and up to Rs 10,000 crore through infrastructure bonds. The maturity of these bonds will range between 7 to 10 years.

In August 2022, the bank had raised Rs 1,000 crore through the sale of infrastructure bonds with a 7.39 % coupon, maturing in seven years.

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