The second largest public sector lender Bank of Baroda has raised $700 million through a dual-tranche overseas bond issuance comprising three-year and five-year notes under its $4-billion medium term notes programme.
The unsecured fixed rate notes received a strong investor response, with the order book peaking at $2.7 billion, representing demand of nearly 3.8x the final issue size, the bank said in a statement on Friday.
Its not immediately known how much the bank has raised in forex debt so fat under its MTN programme.
The issuance was undertaken through the bank’s International Financial Services Centre Banking Unit at Gfit City, and received response from a diverse set of institutional investors.
The bank raised $400 million in three-year notes at a coupon of 5.114% per annum, 90 bps spread over the 3-year US treasury; and $300 million in five-year money at a coupon of 5.318% per annum, up 100 bps over the five-year US treasury.
Strong investor demand helped the bank to tighten pricing from the initial guidance of 3-tear US treasury + 120 bps and 5-year US Treasury + 130 bps for the 5-year tranche. This was the tightest-ever spread over the US treasury in the history of its bond issuances, Debadatta Chand, chief executive said.
The notes will be settled on August 20, 2026 and will mature in August 2029 and August 2031, respectively.
