Bank of Baroda plans to raise 1,000 crore through infrastructure bonds on Aug. 12

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Bank of Baroda plans to raise 1,000 crore through infrastructure bonds on Aug. 12

A source close to the development told IANS that the Bank of Baroda, the second largest state-owned bank, is planning to raise 1,000 crore through the issuance of infrastructure and affordable housing bonds on August 12, raising 1,000 crore.

The source said that the bond's likely tenure is seven years and they have Rs 250 crore as base issue and Rs 750 crore as greenshoe.

The auction for infrastructure and affordable housing bonds is expected to take place on August 12 on the BSE's bidding platform.

There is a better coupon on the bonds expected to be set during the bidding due to the higher demand for PSU bonds.

The bonds have 'AAA' ratings with a stable outlook from ICRA and India Ratings and Research.

The board of directors of the bank approved raising Rs 5,000 crore through Long term Bonds for financing of infrastructure and affordable housing.

The bank is expected to raise 5,000 crore in tranches.

On July 16, the investment committee of the bank approved raising 1,000 crore through these bonds.