Correct Answer : Bank of Baroda
State-owned lender, Bank of Baroda on 25 January 2024 said it has raised Rs 5,000 crore through 10-year infrastructure bonds at a coupon rate of 7.57 percent, release said.
The Bank received a total of 128 bids amounting to Rs 14,950 crore against the total issue size of Rs 5,000 crore, the lender said in a release.
On 23 January 2024, Moneycontrol reported that Bank of Baroda will on 24 January 2024 issue infrastructure bonds worth Rs 5,000 crore maturing in 10 years.
The bonds have a base issue of Rs 1,000 crore, with retain oversubscription of Rs 4,000 crore as a greenshoe option. It is a provision in an underwriting agreement that grants the underwriter the right to sell investors more bonds than initially planned by the issuer if the demand for a security issue proves higher than expected.
The Bank said that the private placement of long-term infrastructure bonds received an overwhelming response, resulting in over-subscription which allowed it to price the issue at a competitive 7.57 percent.
The allotment of these bonds took place on 25th January 2024. The bonds are rated AAA with a Stable outlook by CRISIL and India Ratings.
On 25th January 2024, Mahindra & Mahindra Financial Services, Edel Finance Company, PCBL, Advaya Chemicals Industries, SMFG India Credit Company, L&T Finance Holdings, and Axis Finance raised funds..
Source : Money Control
