Bank of Baroda has raised a $500 million syndicated term loan with a tenure of five years on Thursday. With this deal, the bank has returned to the global syndicated loan market after about one year.
The loan was arranged through the bank’s IFSC Banking Unit located in GIFT City, Gujarat. The transaction was led by MUFG Bank and HSBC, which acted as the mandated lead arrangers, underwriters, and bookrunners for the deal.
A syndicated loan is a large loan that is provided by a group of banks or financial institutions together instead of a single lender. This type of loan is usually used when the amount required is very large.
In the case of Bank of Baroda, the bank raised a $500 million syndicated loan from several international investors and banks. By raising money from multiple lenders, the risk is shared among different institutions.
- One or more banks arrange the loan for the borrower.
- Several banks and investors contribute funds to the loan.
- The risk and repayment responsibility are shared among the lenders.
- To raise large amounts of money quickly.
- To diversify funding sources.
- To reduce risk by sharing it with other lenders.
- To access international investors and financial markets.
For Bank of Baroda, the $500 million loan raised through global investors will be used for general banking and corporate purposes.
Participation from Global Investors
The loan facility received strong interest from international investors. A total of 13 investors from Taiwan, South Korea, Japan, and Singapore participated in the transaction. Bank of Baroda said the funds raised through this loan will be used for general banking activities and corporate purposes.
What MD&CEO said
Debadatta Chand, Managing Director and CEO of Bank of Baroda, said the successful transaction shows strong confidence among global investors in the bank’s financial strength and management. He added that the deal also supports the bank’s strategy of diversifying its funding sources by raising funds from international markets.
Strong Credit Ratings of Bank of Baroda
Bank of Baroda currently holds investment-grade credit ratings from three major global rating agencies. S&P Global Ratings has given the bank a BBB rating with a stable outlook. Fitch Ratings has given a BBB- rating with a stable outlook, and Moody’s has given a Baa3 rating with a stable outlook. Fitch has also recently upgraded the bank’s viability rating.
International Presence of the Bank
Bank of Baroda is a government-owned public sector bank and operates in 15 countries around the world. As of December 31, 2025, the bank’s total international business stood at ₹4,879.08 billion, which accounts for 16.08 percent of its total global business.
-
-
-
-
-
-
-
-
-
-
-
-
