Bank of Baroda raises Rs. 5,000 Croresat a coupon of 7.57% p.a.through the issuance of Long-Term Infrastructure Bonds
The issue received a strong response from investors with a total of 128 bids amounting to Rs. 14,950 Crores
Mumbai, January 25, 2024:Bank of Baroda (Bank), one of India’s leading public sector banks, today announced that it has raised Rs.5,000 Crores through the issuance of Long-Term Infrastructure Bonds. The Bank received a total of 128 bids amounting to Rs. 14,950Crores against the total issue size of Rs. 5,000 Crores (Base issue of Rs.1,000 Crores and Greenshoe option to retain oversubscriptionup to Rs.4,000 Crores).This translates to ~15 times the base issue size and ~3 times the total issue size. The Bank accepted bids for Rs.5,000 Croresat a coupon of 7.57% p.a.
The Bank saidthat the private placement of long-term infrastructure bonds received an overwhelming response, resulting into over subscription which allowedit to price the issue at a competitive 7.57% p.a. This is despite tight liquidity conditions prevalent in the market.
These bonds are senior, unsecured, listed, rated, taxable Bonds, having a fixed maturity of 10 years from the date of allotment.
The allotment of these bonds took place on 25th January, 2024.
The bonds are rated AAA with a Stable outlook by CRISIL and India Ratings.
