Debt financing
Bank of India, Bank of Baroda collect Rs.8,500-Cr through bonds
State-owned Bank of India (BoI) has raised INR 5,000 crore through a 10-year infrastructure bond issuance at a coupon rate of 7.41 %. Bank of Baroda (BoB) has raised INR 3,500 crore by issuing Basel III-compliant Tier-2 bonds at the same coupon rate.BoI’s issuance saw bids amounting to around INR 13,700 crore - roughly 2.7 times the targeted amount. The infrastructure bonds had a base size of INR 2,000 crore and a green shoe option of INR 3,000 crore.BoB’s bond issuance had a base size of INR 1,000 crore and a green shoe option of INR 2,500 crore. The issue received bids totalling INR 9,500 crore - nearly three times the issue size.
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