Bank Of Baroda Raises Rs. 3,500 Crore At A Coupon Of 7.41% P.A. Through Issuance Of Basel III Compliant Tier II Capital Bonds
The issue received a strong response from investors with a total of 120 bids received for Rs. 9,500 crore
Bank of Baroda, one of India’s leading public sector banks, today announced that it has raised Rs. 3,500 crore through the issuance of Basel III Compliant Tier II Capital Bonds. The Bank received a strong response from investors, which allowed it to price the issue at a very competitive coupon of 7.41% p.a. The Bank received a total of 120 bids amounting to Rs. 9,500 crore against the base issue size of Rs. 1,000 crore and a Greenshoe option to retain oversubscription up to Rs. 2,500 crore (total issue size of Rs. 3,500 crore).
This translates to oversubscription of 9.5 times of the base issue size and ~2.7 times of the total issue size. The Bank accepted bids for Rs. 3,500 crore at a coupon of 7.41% p.a.
The bonds are rated ‘AAA’ with a Stable outlook by CRISIL Ratings & India Ratings. These bonds are unsecured, listed, rated, subordinated, non-convertible, taxable, redeemable having a tenor of 15 years from deemed date of allotment with a 10-year call option.
The bidding for the bonds took place on 27th November, 2024 while the allotment of the bonds was done on 28th November, 2024.
