 "BoB raises Rs 5,000 crore through 10-year infrastructure bond at 7.23%")
State-owned Bank of Baroda (BoB) on Wednesday raised Rs 5,000 crore through ten-year infrastructure bonds at a coupon rate of 7.23 per cent, sources said. Additionally, Indian Railway Finance Corporation (IRFC) raised Rs 2,780 crore through ten-year bonds at a cut-off rate of 7.25 per cent.
BoB’s infrastructure bond, rated AAA by CRISIL and India Ratings, had a base issue of Rs 2,000 crore and a green shoe option of Rs 3,000 crore.
According to sources, BoB received a strong market response, with total demand reaching Rs 14,830 crore—7.5 times the base issue size and approximately three times the total issue size—across 110 bids. The bank decided to retain the full issue amount of Rs 5,000 crore.
Separately, IRFC aimed to raise Rs 3,000 crore, with a base issue size of Rs 500 crore and a green shoe option of Rs 2,500 crore. Sources said IRFC, the dedicated financing arm of Indian Railways for mobilising funds from domestic and overseas capital markets, received bids worth Rs 6,030 crore but retained Rs 2,780 crore, falling short of the full issue size.
Meanwhile, the Indian Renewable Energy Development Agency (IREDA) is planning to raise Rs 1,500 crore through ten-year bonds later this week. The bonds are rated AAA by ICRA and India Ratings.
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