Saturday, January 27, 2024

Bank of Baroda Raises Rs. 5,000 Crores At A Coupon Of 7.57% P.A. Through The Issuance Of Long-Term Infrastructure Bonds

* The issue received a strong response from investors with a total of 128 bids amounting to Rs. 14,950 Crores

Bank of Baroda (Bank), one of India’s leading public sector banks announced that it has raised Rs. 5,000 Crores through the issuance of Long-Term Infrastructure Bonds. The Bank received a total of 128 bids amounting to Rs. 14,950 Crores against the total issue size of Rs. 5,000 Crores (Base issue of Rs. 1,000 Crores and Greenshoe option to retain oversubscription up to Rs. 4,000 Crores). This translates to ~15 times the base issue size and ~3 times the total issue size. The Bank accepted bids for Rs. 5,000 Crores at a coupon of 7.57% p.a.

The Bank said that the private placement of long-term infrastructure bonds received an overwhelming response, resulting into over subscription which allowed it to price the issue at a competitive 7.57% p.a. This is despite tight liquidity conditions prevalent in the market.

These bonds are senior, unsecured, listed, rated, taxable Bonds, having a fixed maturity of 10 years from the date of allotment.

The allotment of these bonds took place on 25th January, 2024.

The bonds are rated AAA with a Stable outlook by CRISIL and India Ratings.

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