On February 22, state-owned lender Bank of Baroda announced that it successfully raised Rs 2,500 crore through Basel III Compliant Tier II Bonds at a coupon rate of 7.57 percent.
The bank received an overwhelming response, with a total of 83 bids amounting to Rs 6,237 crore against the base issue size of Rs 1,000 crore. Additionally, there was a greenshoe option to retain oversubscription up to Rs 1,500 crore, resulting in a total issue size of Rs 2,500 crore.
BoB highlighted that this oversubscription equates to approximately six times the base issue size and around 2.5 times the total issue size.
The Tier II Bonds issued by the bank are unsecured, listed, rated, subordinated, non-convertible, taxable, and redeemable, with a tenor of 10 years from the deemed date of allotment and a 5-year call option. The bidding for the bonds occurred on February 21, 2024, with allotment completed on February 22, 2024.
