Bank of Baroda on Wednesday said it has raised Rs 1,000 crore through long-term bonds for financing infrastructure and affordable housing. The bank in June approved raising funds of up to Rs 5,000 crore in multiple tranches during FY23 via affordable housing bonds.
The bank received total bids of Rs 4,714.40 crore against the issue size of Rs 1,000 crore, the lender said in a statement. The bank has set a coupon of 7.39%, with the bonds having a fixed maturity of seven years. The papers are rated AAA with a ‘stable’ outlook by ICRA and India Ratings.
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Separately, the bank’s board will meet on August 22 to consider raising of up to Rs 2,500 crore through Basel-III bonds. The bank’s capital adequacy ratio improved marginally to 15.46% as on June 30, against 15.40% in the previous year.
Long-term funds raised by banks for lending to the infrastructure sector through such bonds are exempt from cash reserve ratio and statutory reserve ratio requirements.