Bank of Baroda Raises $700 Million via Senior Unsecured Notes

MUMBAI — State-owned public sector lender Bank of Baroda announced on August 13, 2026, that it has successfully concluded the issuance of senior unsecured fixed-rate notes totaling $700 million in international markets. The capital raise, conducted under the bank's Medium Term Note (MTN) program under Regulation S, includes $400 million in 3-year notes alongside a $300 million 5-year tranche.

This major offshore capital raising development enables Bank of Baroda to strengthen its foreign currency liquidity buffer, optimize funding costs, and support overseas balance sheet expansion. The notes will officially be issued through the lender's IFSC Banking Unit (IFSCBU) in GIFT City, Gujarat, on August 20, 2026.

Detailed Structure of Bank of Baroda Senior Unsecured Fixed Rate Notes

The transaction comprises two distinct tranches designed to capture institutional demand across different maturity spectrums. According to the regulatory disclosure submitted to Indian stock exchanges, the pricing and maturity structure are organized as follows:

The senior unsecured fixed-rate notes are issued under Regulation S standards, which govern market offers made outside the United States to non-U.S. investors. The issuance builds on an earlier market filing by the bank dated July 24, 2026, which outlined initial capital-raising plans.

Listing and Execution Venue Details

The debt instruments will be issued through Bank of Baroda's specialized IFSC Banking Unit located in GIFT City, Gandhinagar, Gujarat. To ensure secondary market liquidity and broad global institutional visibility, the bank confirmed that the senior unsecured fixed-rate notes will be listed across three major international exchanges:

• Singapore Exchange (SGX)

• India INX (India International Exchange)

• NSE IX (NSE International Exchange at GIFT City)

By executing the issuance out of the IFSC Banking Unit, the public sector bank leverages tax-efficient international financial framework rules aimed at consolidating offshore dollar bond issuances within India's premier international financial center.

Impact on Investors, Markets, and Banking Industry

The successful issuance of $700 million in foreign currency debt reflects steady global investor demand for Indian public sector credit risk. For institutional bondholders and market participants, the fixed-rate yields of 5.114% and 5.318% provide structured dollar returns backed by one of India's largest state-backed lenders.

For corporate borrowers and trade finance customers, the foreign currency proceeds provide Bank of Baroda with capital resources to fund cross-border transactions, external commercial borrowings (ECBs), and global project financing requirements without relying solely on domestic currency swap markets.

Official Sources Section

All factual details, interest rates, execution timelines, and listing venues mentioned in this report are sourced directly from Bank of Baroda’s regulatory disclosure letter (Ref: BCC:ISD:118:16:425) submitted to the BSE Limited and the National Stock Exchange of India Limited on August 13, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Quote Section

"Bank of Baroda has concluded the issuance of Senior Unsecured Fixed Rate Notes amounting to USD 400.00 Mn having maturity of 3 years at coupon of 5.114% p.a. and USD 300 Mn having maturity of 5 years at coupon of 5.318% p.a., payable semi-annually under Regulations – S," stated S Balakumar, Company Secretary of Bank of Baroda, in the official regulatory filing.

Why It Matters

This foreign currency capital raise allows Bank of Baroda to diversify its international funding channels while locking in fixed borrowing costs over 3-year and 5-year horizons. Listing on GIFT City exchanges alongside the Singapore Exchange further underscores the growing role of India’s international financial hub in routing global debt capital.

Key Facts at a Glance

• Total Raised: $700 million total across two fixed-rate tranches.

• 3-Year Tranche: $400 million at a fixed coupon rate of 5.114% per annum.

• 5-Year Tranche: $300 million at a fixed coupon rate of 5.318% per annum.

• Issuance Date: Officially scheduled for August 20, 2026, via IFSCBU GIFT City.

• Exchanges: To be listed on SGX, India INX, and NSE IX.

Frequently Asked Questions (FAQ)

What is the primary purpose of Bank of Baroda issuing senior unsecured fixed-rate notes?

Bank of Baroda issued the senior unsecured fixed-rate notes under its Medium Term Note program to secure long-term foreign currency funding for its international operations and global balance sheet requirements.

What are the interest rates for the Bank of Baroda senior unsecured fixed-rate notes?

The 3-year tranche of $400 million carries a coupon rate of 5.114% per annum, while the 5-year tranche of $300 million pays 5.318% per annum, both payable semi-annually.

Where will these foreign currency bonds be listed?

The notes will be listed on the Singapore Stock Exchange (SGX), India INX, and NSE IX Exchange at GIFT City.

Source: Official regulatory filing submitted to BSE Limited and National Stock Exchange of India Limited.