Bank of Baroda Board approves proposal to raise up to Rs.2,500 crore via Basel III compliant bonds
On Friday, December 15, Bank of Baroda announced that its board has given approval for the issuance of Basel III compliant bonds as a means of raising funds. The Capital Raising Committee, in particular, has greenlit the initiation of tranche I bonds, featuring a base issue size of ₹1000 crore and a greenshoe option to retain oversubscription up to ₹1500 crore.
According to an exchange filing, Bank of Baroda stated, “The Capital Raising Committee of the Bank has approved raising of tranche I of Basel III compliant Tier II bonds with a base issue size of ₹1000 crore with a greenshoe option to retain oversubscription up to ₹1500 crore, totaling ₹2500 crore (Maturity of 10 years with a call of option at the end of 5 years).”
The move aligns with the global requirement for banks to enhance and fortify their capital planning processes under Basel-III capital regulations.
As of 1:30 pm, Bank of Baroda’s shares were trading 0.3% higher, continuing an upward trend following a brief dip. The stock has witnessed gains in eight out of the last 10 trading sessions, accumulating an over 18% increase in value in the year 2023.
Notably, the shares of the lender had reached a 52-week high of ₹224.4 apiece on Thursday, December 15.
