BoB raises Rs 5,000 cr through infra bond issue, second in a fortnight

State-owned Bank of Baroda on Monday announced that it has raised Rs 5,000 crore through a 10-year infrastructure bond issuance subscribed by domestic investors.

This is the second issuance from the lender in a fortnight after the Rs 5,000 crore sale on August 26 and comes amid a raft of such issuances.

Banks have become more aggressive at tapping into such avenues given the slower deposit growth in the system.

The bank was able to squeeze the pricing of the newest offering to 7.26 per cent, 0.04 per cent lower than its last one, officials said, adding this is the tightest pricing for an issuance in recent times.

Both the issuances were oversubscribed nearly three times, and it was investor feedback on missing out at the last issuance that prompted the bank to come back with another offering sooner.

With the latest issuance, the bank has exhausted the board's approved limit to raise Rs 10,000 crore from infra bond issuances and there are no immediate plans to raise more, the offic