Bank Of Baroda Raises ₹6,678 Crore Through Overseas Bonds, Investor Demand Peaks At ₹25,472 Crore
Mumbai: Bank of Baroda has raised USD 700 million , or about Rs 6,678 crore, through a two-part overseas bond issue that attracted demand nearly four times the amount offered. The bank issued three-year and five-year senior unsecured fixed-rate notes through its banking unit at GIFT City. The bonds were issued under its USD 4 billion medium-term note programme. Strong Demand Investor orders…
Mumbai: The Bank of Baroda raised approximately Rs 6,678 crore through an overseas bond issue comprising three-year and five-year senior unsecured fixed-rate notes. Investor demand reached nearly four times the offered amount, peaking at around Rs 25,472 crore. The bank issued the bonds under its USD 4 billion medium-term note programme.
The three-year bonds, carrying a coupon of 5.114%, were priced at 90 basis points above the three-year US Treasury rate, while the five-year bonds, with a 5.318% coupon, were priced 100 basis points above the five-year US Treasury rate. Strong investor interest led the bank to lower its pricing from the initial guidance, resulting in tighter spreads compared to US Treasury yields.
Bank officials attributed the success to investor confidence in the bank's performance and growth prospects. S&P, Fitch, and CareEdge Global all rated the bonds with a stable outlook. The bonds will be listed on India INX, NSE International Exchange, and the Singapore Exchange, settling on August 20, 2026. The three-year bonds mature in August 2029, while the five-year bonds mature in August 2031.
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