Bank of Baroda Raises ₹6,678 Crore Through Overseas Bonds

Bank of Baroda has successfully raised USD 700 million, equivalent to approximately ₹6,678 crore, through a two-part overseas bond issue. The bonds were issued in two tranches: three-year and five-year senior unsecured fixed-rate notes, through its banking unit at GIFT City.

The issue attracted strong demand from investors, with orders peaking at USD 2.67 billion, or around ₹25,472 crore, which is nearly four times the amount offered. This overwhelming response allowed the bank to reduce the pricing from its initial guidance.

The three-year bonds carried a coupon of 5.114 per cent, priced at 90 basis points above the three-year US Treasury rate, raising USD 400 million, or nearly ₹3,816 crore. The five-year bonds carried a coupon of 5.318 per cent, priced at 100 basis points above the five-year US Treasury rate, raising USD 300 million, or about ₹2,862 crore.

Managing Director and Chief Executive Officer Debadatta Chand expressed satisfaction with the response, stating that it reflects investor confidence in the bank's strength and direction. He added that the competitive pricing would help the bank widen its funding sources and support growth.

The bonds were issued under the bank's USD 4 billion medium-term note programme and have been rated by S&P, Fitch, and CareEdge Global. The notes will be listed on India INX, NSE International Exchange, and the Singapore Exchange, and will settle on August 20, 2026.

The strong demand and competitive pricing are a testament to the bank's financial health and its ability to attract investors. The funds raised will help the bank to further its growth plans and expand its operations.

The issue is also significant as it demonstrates the bank's ability to access international markets and raise funds at competitive rates. This will help the bank to diversify its funding sources and reduce its dependence on domestic markets.

In conclusion, the successful raising of USD 700 million through the overseas bond issue is a significant achievement for Bank of Baroda, and reflects the bank's strong financial position and its ability to attract investors.

The bank's ability to raise funds at competitive rates will help it to support its growth plans and expand its operations, which is positive for the bank's customers and stakeholders. The issue also demonstrates the bank's ability to access international markets and raise funds, which will help to diversify its funding sources and reduce its dependence on domestic markets.

Overall, the issue is a significant milestone for Bank of Baroda, and demonstrates the bank's commitment to its growth plans and its ability to attract investors.