Bank of Baroda to consider raising funds via tier 2, AT 1 bonds

Public sector lender Bank of Baroda said on Friday its capital raising committee will meet next week to consider raising funds through bonds.

The lender will raise debt capital through the issuance of Basel III compliant tier 2 bonds or additional tier 1 bonds.

The bank's capital raising committee of whole-time directors' meeting is scheduled to be held on September 18 to consider the same.

"We advise that meeting of the capital raising committee of whole-time directors of the bank is scheduled to be held on September 18 to consider raising of debt capital for the bank through the issuance of Basel III compliant tier 2 bonds / additional tier 1 bonds," the bank said in a regulatory filing.

In another development, Bank of Baroda has decided to sell the head office of erstwhile Dena Bank in Bandra Kurla Complex for at least Rs 530 crore. The e-auction will be conducted on October 18.

This follows the merger of Bank of Baroda with Dena Bank and Vijaya Bank in April. In September last year, the government had decided to merge three banks -- Bank of Baroda, Dena Bank and Vijaya Bank to reduce the amount of capital needed to pump into these lenders and help clean their balance sheets.

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