New Delhi [India], August 14 (ANI): Bank of Baroda has raised USD 700 million through an overseas bond issuance, with investor orders peaking at USD 2.67 billion, nearly 3.8 times the final issue size, the public sector bank said.
The fundraise was completed through a dual-tranche issuance of three-year and five-year senior unsecured fixed-rate notes under the bank's USD 4 billion Medium-Term Note Programme.
The bank raised USD 400 million through three-year notes carrying a coupon of 5.114 per cent per annum and another USD 300 million through five-year notes at a coupon of 5.318 per cent per annum. The amounts, maturities and coupon rates were also disclosed by the bank in a stock exchange filing.
Strong investor demand helped Bank of Baroda tighten the pricing of both tranches by 30 basis points from the initial guidance.
The three-year notes were priced at a spread of 90 basis points over the three-year US Treasury rate, compared with the initial pricing guidance of 120 basis points. The five-year notes were priced at 100 basis points over the five-year US Treasury rate, against the initial guidance of 130 basis points.
According to the bank, the final pricing represented the tightest-ever spread over US Treasuries achieved in the history of its bond issuances.
"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," Bank of Baroda Managing Director and CEO Debadatta Chand said.
"The competitive pricing achieved, coupled with strong participation from high-quality international investors, reinforces our ability to efficiently diversify our funding base and support our long-term growth priorities," he added.
The bonds have been issued through the bank's International Financial Services Centre Banking Unit at GIFT City.
The exchange filing said the notes will be issued on August 20 and listed on the Singapore Exchange, India International Exchange and NSE International Exchange.
The three-year and five-year notes have been rated BBB (Stable) by S&P, BBB- (Stable) by Fitch and BBB+ (Stable) by CareEdge Global.
The notes are scheduled to settle on August 20, 2026, and will mature in August 2029 and August 2031, respectively. (ANI)
Bank of Baroda raises USD 700 million through overseas bonds; demand hits USD 2.67 billion
