MUMBAI - Bank of Baroda (BoB) has announced its intention to raise up to ₹10,000 crore by issuing infrastructure bonds. The state-owned lender is set to launch the first tranche valued at ₹5,000 crore, which will have a term ranging between 7-10 years. This initial offering includes a base issue of ₹1,000 crore with an oversubscription or green shoe option of up to ₹4,000 crore (INR100 crore = approx. USD12 million).
The bonds are aimed at funding infrastructural development in India and will be subject to a five-year lock-in period before investors can trade them on major exchanges such as the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE). Bank of Baroda's move comes as part of a broader initiative to enhance the country's infrastructure financing.
Investment in these bonds is open to Indian citizens who are over eighteen years old and Hindu Undivided Families (HUF), with the prerequisite that they must have a demat account and comply with Know Your Customer (KYC) norms by providing valid identity and address proofs.
On the announcement day, shares of Bank of Baroda experienced a slight increase, closing at ₹194.40 on the BSE. This financial maneuver reflects the bank's strategic efforts to support long-term infrastructural projects and indicates its commitment to contributing to India's economic growth.
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