New Delhi: Bank of Baroda has announced a USD 700 million international bond issuance under its Medium Term Note (MTN) programme through its IFSC Banking Unit (IFSCBU).
The fundraising comprises two tranches of senior unsecured fixed-rate notes with different maturities and coupon rates. The issue is aimed at strengthening the bank’s access to international capital markets and diversifying its funding sources.
Bank of Baroda $700 Million Bond Issue Details
The bond issuance consists of two tranches:
- 3-year notes: USD 400 million at a coupon of 5.114% per annum
- 5-year notes: USD 300 million at a coupon of 5.318% per annum
- Total issuance: USD 700 million
- Structure: Senior, unsecured, fixed-rate notes
- Interest payment: Semi-annual
- Issuance route: Bank of Baroda IFSCBU
- Format: Regulation S
The notes are scheduled to be issued on August 20, 2026, subject to the applicable issuance process.
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Proposed Listing on Global and Indian Platforms
Bank of Baroda has proposed listing the bonds on multiple international financial-market platforms.
The proposed listings include:
- Singapore Exchange
- India INX
- NSE-IX, GIFT City
The proposed multi-market listing could provide the securities with access to a broader investor base across international and Indian financial markets.
What the Bank of Baroda Bond Issue Means
The USD 700 million fundraising will give Bank of Baroda access to foreign-currency funding while diversifying its overall funding base across different maturities.
The three-year tranche carries a 5.114% coupon, while the longer five-year tranche carries a higher 5.318% coupon. Both notes will make interest payments twice a year.
The transaction also strengthens the bank’s presence in international debt markets and provides access to longer-term foreign-currency resources.
Bank of Baroda Follows SBI’s International Bond Issue
The Bank of Baroda transaction comes shortly after State Bank of India raised USD 500 million through a five-year international bond issue at a 5.25% coupon, with interest payable semi-annually.
SBI’s issue was priced at a spread of 88 basis points over five-year US Treasury securities, according to the information provided.
Bank of Baroda had previously accessed the international bond market in April 2019, when it raised USD 300 million through five-year bonds carrying a 3.87% coupon.
RBI Special Swap Window and FCNR(B) Deposits
The latest international fundraising comes as banks look to take advantage of a special swap window announced by the Reserve Bank of India (RBI).
The funds raised through such international borrowing can support banks’ foreign-currency funding requirements. According to the information provided, banks are also expected to use these resources to support lending to overseas clients, including clients who may place deposits under the FCNR(B) scheme.
Under the special arrangement, the RBI provides support for the associated hedging costs.
Regulatory Disclosure
Bank of Baroda disclosed the bond issuance under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The transaction marks another step in the bank’s efforts to diversify its funding sources and strengthen its international capital-market presence.
About Bank of Baroda
Bank of Baroda (BoB) is a major Indian public sector bank with operations across India and several international markets. The bank provides a wide range of banking and financial services, including retail banking, corporate banking, international banking and treasury services.
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