Bank Of Baroda Raises Rs 5000 Crore Via Infrastructure Bonds
Bank of Baroda (BoB), second largest public sector bank india, recently disclosed its successful fundraising venture on November 30, 2023, wherein it secured Rs. 5,000 crore through the issuance of Long-Term Bonds dedicated to financing Infrastructure and Affordable Housing projects.
The bank experienced an overwhelming response, with total bids reaching Rs. 10,350 crore, surpassing the targeted issue size of Rs. 5,000 crore (comprising a base issue of Rs. 1,000 crore and a Greenshoe option of Rs. 4,000 crore). BoB accepted bids amounting to Rs. 5,000 crore, featuring a competitive coupon rate of 7.68% per annum.
These bonds, characterized as Secure, Unsecured, Listed, Rated, and Taxable, come with a fixed maturity period of 10 years from the allotment date. The allotment process occurred on December 1, 2023.
CRISIL and India Ratings have both assigned these bonds an AAA rating with a stable outlook, reflecting the high creditworthiness and stability associated with the Bank of Baroda.
