Bank of Baroda to raise up to ₹15,000 crore through infra, tier-II debt bonds

The decision to raise the funds was finalised at the committee’s meeting held earlier in the day, the public sector lender said in a regulatory filing.

On the planned fundraise via the tier-II debt bonds route, the bank said the panel has cleared the issuance of ₹2,000 crore through 10-year tier-II bonds, and permitted the raising of another ₹3,000 crore through the greenshoe option.

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“…Capital Raising Committee of our Bank in its meeting held today i.e. 18.11.2023 has approved the issuance of ₹2,000 crore Tier II/sub debt bond with the greenshoe option to raise another ₹3,000 crore totalling ₹5,000 crore (10 years with call option at the end of 5 years),” the filing stated.

The bank has further decided to issue 7-year infrastructure bonds amounting to ₹2,000 crore, “with a greenshoe option to raise an additional ₹8000 crores totaling the issue size of ₹10,000 crore”, it added.

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The development comes over a month after the bank, in a regulatory filing on October 11, said its board has approved a proposal to raise ₹10,000 crore to fund affordable housing and infrastructure projects.

In the quarter ending September 2023, the state-owned lender had reported a net profit of ₹4,253 crore, higher by 28 percent as compared to ₹4,001 crore in the year-ago period. 

The bank’s total income rose to ₹32,033 crore in the second quarter, compared to ₹23,080 crore in the corresponding period of the previous fiscal.

In the last trading session on November 17, the lender’s scrip settled at ₹196.65 on the BSE, down 0.91 percent as against the preceding day’s close.

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Updated: 18 Nov 2023, 06:59 PM IST