The Dual tranche issuance received a strong
investor response with peak order book of USD 2.67 billion
Mumbai : Bank of Baroda,
India’s International Bank, has raised USD 700 million through a dual-tranche
overseas bond issuance comprising 3-year and 5-year Senior Unsecured Fixed Rate
Notes under its USD 4 billion Medium-Term Note Programme. The issuances,
undertaken through the Bank’s International Financial Services Centre Banking
Unit at GIFT City, received a strong response from investors, with the order
book peaking at USD 2.67 billion, representing demand of nearly 3.8
times the final issue size.
The Bank raised USD 400 million through the
3-year tranche at a coupon of 5.114% per annum (representing a
spread of 90 basis points over the 3-year US Treasury rate). A further USD
300 million was raised through the 5-year tranche at a coupon of 5.318% per
annum (a spread of 100 basis points over the 5-year US Treasury rate). Strong
investor demand enabled the Bank to significantly tighten pricing from the Initial
Pricing Guidance of 3-Year US Treasury + 120 basis points for the 3-year
tranche and 5-Year US Treasury + 130 basis points for the 5-year tranche. The Bank achieved
the tightest-ever spread over the US Treasury in the history of its bond issuances.
Dr. Debadatta Chand, Managing Director & CEO,
Bank of Baroda said, “The exceptionally strong investor response to our USD 700
million bond issuance reflects deep market confidence in the Bank, its
financial resilience and clear strategic direction. The competitive pricing achieved,
coupled with strong participation from high-quality international investors,
reinforces our ability to efficiently diversify our funding base and support
our long-term growth priorities."
The
issue has been rated BBB (Stable) by S&P, BBB- (Stable) by Fitch and BBB+
(Stable) by CareEdge Global. The bonds will be listed on the India International Exchange (IFSC) Limited (India INX), NSE International Exchange (NSE-IX)
and Singapore Exchange (SGX-ST)
The notes will be settled on 20 August 2026 and
will mature in August 2029 and August 2031, respectively.