Bank of Baroda raises Rs. 2,500 Crores at a coupon of 7.57% p.a. through the issuance of Basel III Compliant Tier II Bonds

The issue received a strong response from investors with a total of 83 bids amounting to Rs. 6,237 Crores

Bangalore, 22nd February 2024 : Bank of Baroda (Bank), one of India’s leading public sector banks announced that it has raised Rs. 2,500 Crores through the issuance of Basel III Compliant Tier II Bonds Series XXVI. The Bank received a strong response from investors, which allowed it to price the issue at a very competitive coupon of 7.57% p.a, with the spreads narrowing on government securities (G-Sec).

The Bank received a total of 83 bids amounting to Rs. 6,237 Crores against the base issue size of Rs. 1,000 Crores and a Greenshoe option to retain oversubscription up to Rs. 1,500 Crores (total issue size of Rs. 2,500 Crores). This translates to ~6 times of the base issue size and ~2.5 times of the total issue size. The Bank accepted bids for Rs. 2,500 Crores at a coupon of 7.57% p.a.

These bonds are unsecured, listed, rated, subordinated, non-convertible, taxable, redeemable having a tenor of 10 years from deemed date of allotment with a 5-year call option.

The bidding of the bonds took place on 21st February, 2024 while the allotment was done on 22nd February, 2024.