Bank of Baroda raises $700mn through overseas bonds; demand hits $2.67bn

Bank of Baroda has secured $700 million from an overseas bond issuance, demonstrating robust investor confidence with orders reaching $2.67 billion, nearly four times the final amount.

The public sector bank completed a dual-tranche issuance, offering three-year and five-year senior unsecured fixed-rate notes. The three-year notes raised $400 million at a 5.114% coupon, while the $300 million in five-year notes carried a 5.318% coupon. Strong demand allowed the bank to tighten pricing by 30 basis points on both tranches, achieving spreads of 90 and 100 basis points over US Treasuries, respectively.

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The exceptionally strong investor response to our USD 700 million bond issuance reflects deep market confidence in the Bank, its financial resilience and clear strategic direction.

Bank of Baroda Managing Director and CEO Debadatta Chand highlighted the "exceptionally strong investor response" as a reflection of deep market confidence in the bank's financial resilience and strategic direction. He added that the competitive pricing and high-quality investor participation reinforce the bank's ability to diversify its funding base and support growth.

The bonds were issued through the bank's International Financial Services Centre Banking Unit in GIFT City. They are scheduled to settle on August 20, 2026, and will be listed on the Singapore Exchange, India International Exchange, and NSE International Exchange. The notes have received stable ratings from S&P, Fitch, and CareEdge Global.

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The competitive pricing achieved, coupled with strong participation from high-quality international investors, reinforces our ability to efficiently diversify our funding base and support our long-term growth priorities.