In a strategic move, the Bank of Baroda (BoB) is set to issue infrastructure bonds worth ₹5,000 crore today, forming part of a larger ₹10,000 crore bonds issuance plan. The total bonds comprise a base issue of ₹2,000 crore and a green shoe option of ₹8,000 crore, with a tenure of up to 7 years.
The bank, as per its earlier statement on November 18, received approval from its capital raising committee to raise up to ₹15,000 crore. This includes ₹5,000 crore via tier-II debt bonds and a maximum of ₹10,000 crore through infrastructure bonds.
Details for Today:
– ₹5,000 crore infrastructure bonds to be issued today, November 30.
– Base issue of ₹1,000 crore with a green shoe option of up to ₹4,000 crore.
– Bond tenure ranges from 7 to 10 years.
– Bidding scheduled between 11 am and 12 pm via the NSE.
– Minimum application size set at ₹1 lakh, available in multiples of the same amount.
– Rated ‘AAA’ with a ‘Stable’ outlook by CRISIL and India Ratings.
BoB’s initiative aligns with the burgeoning corporate bond market, which witnessed significant expansion in FY23, with private placements amassing ₹7.5 lakh crore ($94 billion). Abhijit Roy, CEO of GoldenPi, highlighted the positive impact of SEBI’s initiative to reduce the ticket size, fostering increased retail investor participation.
In parallel efforts, the National Bank of Financing Infrastructure and Development (NABFID), along with Public Sector Banks (PSBs) and Indian Infrastructure Financiers, aims to generate funds worth ₹30,000 crore through bond sales ahead of elections.
