Bank of Baroda Raises Rs. 2,500 Cr Through  Basel III Compliant Tier II Bonds

Mumbai: Bank of Baroda , a prominent public sector bank in India, has successfully raised Rs. 2,500 crore on December 20, 2023, through the issuance of Basel III Compliant Tier II Bonds Series XXV. The bank experienced robust demand, with a total of 88 bids totaling Rs. 6,803 crore, significantly surpassing the base issue size of Rs. 1,000 crore.

This oversubscription amounted to 6.8 times the base issue size, including the Greenshoe option to retain oversubscription up to Rs. 1,500 crore. The Bank accepted bids for Rs. 2,500 crore at an attractive coupon rate of 7.75% per annum.

Characterized as Unsecured, Listed, Rated, Subordinated, Non-Convertible, Taxable, and Redeemable, these bonds come with a tenor of 10 years from the deemed date of allotment and include a 5-year call option. The allotment of these bonds was concluded on December 21, 2023. This successful fundraise reflects the market’s confidence in Bank of Baroda and its strategic financial initiatives.