2 weeks ago

Bank of Baroda Raises $700 Million via Oversubscribed Overseas Bonds

Bank of Baroda Raises $700 Million via Oversubscribed Overseas Bonds
Bank Of Baroda Raises ₹6,678 Crore Through Overseas Bonds, Investor Demand Peaks At ₹25,472 Crore · freepressjournal.in

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.

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

Sources

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