Bank of Baroda raises $700 million overseas bonds

Bank of Baroda, India's second-largest public sector lender, successfully raised USD 700 million through a dual-tranche overseas bond issuance on August 14, 2026. The issuance comprised three-year senior unsecured fixed-rate notes of USD 400 million at a coupon of 5.114% and five-year notes of USD 300 million at a coupon of 5.318%, under its USD 4 billion Medium-Term Note Programme. Investor demand peaked at USD 2.67 billion, nearly 3.8 times the final issue size, enabling the bank to tighten pricing by 30 basis points from initial guidance. The three-year notes were priced at 90 basis points over the three-year US Treasury rate, and the five-year notes at 100 basis points over the five-year US Treasury rate, achieving the tightest-ever spread over US Treasuries in the bank's bond issuance history. The bonds were issued through the bank's International Financial Services Centre Banking Unit at GIFT City and will be listed on the Singapore Exchange, India International Exchange, and NSE International Exchange. The notes are rated BBB (Stable) by S&P, BBB- (Stable) by Fitch, and BBB+ (Stable) by CARE ESG Ratings Limited. Settlement is scheduled for August 20, 2026, with maturities in August 2029 and August 2031. Managing Director and CEO Debadatta Chand highlighted the strong market confidence and the bank's ability to diversify its funding base.