Bank of Baroda to issue infrastructure bonds of up to ₹5,000 crore in first tranche

Bank of Baroda on Friday (November 24) said it has decided to issue infrastructure bonds of up to ₹5,000 crore in the first tranche for a tenure between seven to 10 years. The announcement follows the lender's earlier disclosure of intending to raise infrastructure bonds amounting to ₹10,000 crore. This initial tranche comprises a base issue of ₹1,000 crore, supplemented by a green shoe option of up to ₹4,000 crore, Bank of Baroda said.

Infrastructure bonds serve as crucial financial instruments utilised by various entities within India, including governments, banks, and authorised infrastructure companies. They play a pivotal role in funding diverse developmental projects across the nation.

Typically, they come with a lock-in period of five years during which investors cannot sell the bonds However, post the lock-in period, investors have the flexibility to trade these bonds on stock exchanges like the National Stock Exchange (NSE) or BSE.