BANK OF BARODA PLANS TO RAISE RS 25 BILLIONS THROUGH BONDS
Bank of Baroda is planning to raise as much as Rs 25 billions in the next few months to fulfil new capital requirements.The Mumbai-based bank has filed documents with both the stock exchanges to raise Rs 5 billion in perpetual bonds, Rs 15 billion in upper-tier 2 debt and Rs 5 billion in lower-tier 2 bonds.
It will also raise the necessary funds for the usual operational needs and to meet the new Base II requirements. Indian Banks with offshore branches and foreign banks in India are expected to meet Base II requirements by March 2008 that aims to match capital reserve neeeds to the risks faced by the banks.
Bank of Baroda capital Markets, the merchant banking arm and a wholly owned subsidiary of the bank is the sole banker to the issue.
