2 weeks ago
Bank of Baroda Raises $700 Million via Oversubscribed Overseas Bonds
Bank of Baroda is a big bank in India.
It wanted to borrow money from investors in other countries, so it sold bonds.
The bank borrowed 700 million US dollars, which is about 6,678 crore rupees.
Many people and companies wanted to lend the bank money — they offered almost four times more money than the bank needed.
Because so many investors were interested, the bank could negotiate a better deal with lower interest.
The bank created two kinds of bonds: ones that last three years and ones that last five years.
Bonds are like IOUs that promise to pay the money back with interest later.
Rating agencies checked how safe the bank is and gave it good safety scores.
The bonds will be listed on stock exchanges in India and Singapore.
The bank's leader said this shows investors trust the bank and will help it grow.
Bank of Baroda raised USD 700 million (about Rs 6,678 crore) through a two-part overseas bond issue.
Investor demand peaked at USD 2.67 billion (around Rs 25,472 crore), about 3.8 times the issue size.
The bank issued USD 400 million in three-year notes at a 5.114% coupon and USD 300 million in five-year notes at a 5.318% coupon.
Final pricing closed 30 basis points tighter than initial guidance, described as the bank's tightest-ever spreads over US Treasury rates.
The bonds will list on India INX, NSE International Exchange and the Singapore Exchange, with settlement on August 20, 2026.
- Who
- Bank of Baroda, led by Managing Director and CEO Dr Debadatta Chand.
- What
- Raised USD 700 million (about Rs 6,678 crore) through three-year and five-year senior unsecured fixed-rate notes issued under its USD 4 billion medium-term note programme.
- Where
- Issued through the bank's banking unit at GIFT City; the notes will be listed on India INX, NSE International Exchange and the Singapore Exchange.
- When
- The bonds are scheduled to settle on August 20, 2026; the three-year notes mature in August 2029 and the five-year notes in August 2031.
- Why
- To diversify the bank's funding base, secure additional foreign-currency funding, and support long-term growth priorities.
Key facts
- Amount Raised
- USD 700 million (about Rs 6,678 crore)
- Investor Demand
- USD 2.67 billion (about Rs 25,472 crore), roughly 3.8x the issue size
- Three-Year Notes
- USD 400 million (about Rs 3,816 crore) at 5.114% coupon, 90 bps over the 3-year US Treasury
- Five-Year Notes
- USD 300 million (about Rs 2,862 crore) at 5.318% coupon, 100 bps over the 5-year US Treasury
- Initial Guidance
- 120 bps (3-year) and 130 bps (5-year) over US Treasury; final pricing 30 bps tighter
- Ratings
- S&P BBB (Stable), Fitch BBB- (Stable), CareEdge Global BBB+ (Stable)
- Medium-Term Note Programme
- USD 4 billion
- Settlement & Maturity
- Settles August 20, 2026; 3-year notes mature August 2029, 5-year notes mature August 2031
Quotes
Dr Debadatta Chand
Managing Director & CEO of Bank of Baroda
“"The exceptionally strong investor response to our USD 700 million bond issuance reflects deep market confidence in the Bank, its financial resilience and clear strategic direction."”
businesstoday.in







