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Public sector lender Bank of Baroda has announced that it will be raising funds to the tune of Rs 1,000 crores.
This move comes after the bank approved a fundraise of Rs 5,000 crores via debt in June. The bank has planned to raise Rs 5,000 crores in tranches in FY 22-23 to address infrastructure and affordable housing. These bonds will be senior, unsecured, and not form part of the bank's capital.
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According to RBI guidelines, banks are allowed to issue long-term bonds with a minimum maturity of seven years for lending to long-term projects in infrastructure and affordable housing.
“We refer to our letter no. BCC:ISD:114:16:149 dated 07.07.2022 and advise that Investment Committee of Bank of Baroda in its meeting held today i.e. 16.07.2022 has approved raising of Rs.1000 crores towards Long Term Bonds for Financing of Infrastructure and Affordable Housing out of the Board approved limit of Rs.5000 crores." the Bank said in its regulatory filing.
The bank's stock responded positively to the news as it opened higher today. Bulls favored the stock as the stock surged 3.8% today to close at Rs 108 per share today.
Article by Aman Agarwal.
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