Bank of Baroda (BoB) had raised Rs 5,000 crore through the first tranche of infrastructure bonds. The debt was mobilised at a coupon rate of 7.68 per cent.
On November 18, the state-owned lender had disclosed its intention to raise infrastructure bonds of up to Rs 10,000 crore consisting of a base issue of Rs 2,000 crore and a greenshoe option of Rs 8000 crore for a tenor of up to 7 years.
Subsequently, the bank decided to issue, in the first tranche, infrastructure bonds of up to Rs 5,000 crore with the base issue of Rs 1,000 crore and a greenshoe option of up to Rs 4,000 crore for a tenor between 7-10 years.
These bonds were raised on Thursday on a private placement basis. They were rated ‘AAA’ with a stable outlook by Crisil and India Ratings.
The ratings on the debt instruments of BoB continue to factor in the expectation of strong support from the majority owner, government of India (GoI), established franchise and strong market position in the Indian banking sector, adequate capitalisation and resource profile.
Shares of the lender on Thursday ended marginally lower at Rs 197.25 on the BSE compared with its previous close of Rs 197.65.
BoB had earlier reported a 28 per cent rise in its net profit to Rs 4,253 crore in the second quarter ended September after a moderation in bad loans and rise in its core income.
DLF show
DLF is mulling its first sale of bonds in three years amid a revival in the country’s real estate market, three merchant bankers said on Thursday.
“The company is engaging with investors and bankers for a bond issue but it has not firmed up any plans yet,” a banker with a private lender said.
“It is difficult to pinpoint the exact timing (of the issue), as the talks are at a very basic stage,” the banker said.
DLF may look to raise around Rs 10 billion ($120 million) through the bond issue but has yet to receive the board approval for its fundraising plan, the bankers said.
The real estate company may look to raise funds for two years to five years, they added.
With inputs from Reuters
