Bank of Baroda plans to raise up to Rs 15,000 crore through bonds

State-owned Bank of Baroda (BoB) on Saturday said it proposes to raise up to Rs 15,000 crore via bonds to fund business growth. The capital raising committee of the bank in its meeting held on Saturday has approved the issuance of Rs 2,000 crore Tier II/sub debt bond with the greenshoe option to raise another Rs 3,000 crore totalling Rs 5,000 crore (10 years with call option at the end of 5 years), BoB said in a regulatory filing. 

The bank has further decided to issue Infrastructure Bonds amounting to Rs 2,000 crore with a greenshoe option to raise an additional Rs 8,000 crore totaling the issue size of Rs 10,000 crore (tenure up to 7 years), it said.

State-owned Bank of Baroda (BoB) said in an exchange filing on November 18 it plans to raise up to Rs 15,000 crore through tier-II and infrastructure bonds to fund business growth.

The capital raising committee of the bank met today and decided to raise Rs 5,000 crore through Tier-II bonds and Rs 10,000 crore through infrastructure bonds, an exchange filing said.

Bank of Baroda's regulatory filing said: “The capital raising committee of the bank in its meeting held on Saturday approved Tier II/sub-debt of Rs 2,000 crore with greenshoe option to raise Rs 3,000 crore and a total of Rs 5,000 crore. The issue of bonds has been approved. (10 years with a call option at the end of five years.)

It said: “The bank has decided to issue infrastructure bonds of Rs 2,000 crore with greenshoe option to raise an additional Rs 8,000 crore, taking the total issue size to Rs 10,000 crore (tenor up to seven years). "