Bank of Baroda, NABARD, and IREDA raise crores through bonds
What's the story
Bank of Baroda has raised Rs. 2,500 crore via 10-year Basel-III Tier-II bonds, offering a 7.75% coupon rate. In a similar move, the National Bank for Agriculture and Rural Development (NABARD) raised Rs. 10,000 crore via 10-year-4-month-and-7-day bonds at a 7.65% coupon rate. The Indian Renewable Energy Development Agency (IREDA) also earned Rs. 1,000 crore using 10-year bonds with a 7.65% coupon rate.
Details
BoB's base issue and oversubscription details
Bank of Baroda initially aimed for a base issue of Rs. 1,000 crore but ultimately retained an oversubscription of Rs. 1,500 crore. The bank received bids totaling Rs. 1,000 crore at a 7.70% coupon rate and Rs. 2,500 crore at 7.75%. A greenshoe option enabled the bank to issue more bonds and raise additional funds beyond the base issue size.
What Next?
NABARD and IREDA's bond issue details
NABARD's bond issue included a base issue and greenshoe option of Rs. 5,000 crore each, attracting bids worth Rs. 3,500 crore at 7.63%, Rs. 5,000 crore at 7.64%, and Rs. 10,000 crore at 7.66%. IREDA's bond issue consisted of a Rs. 500 crore base issue and a Rs. 1,500 crore greenshoe. Tomorrow, the Kerala Infrastructure Investment Fund Board (KIIFB) and Small Industries Development Bank of India (SIDBI) plan to issue bonds worth a combined Rs. 6,499.96 crore.