Bank of Baroda (BoB), India’s second-largest state-run lender by assets, has successfully raised $400 million through the reissuance of its 5.3180% August 2031 U.S. dollar-denominated bonds at a yield of 5.3890%. This latest issuance makes BoB the second state-owned bank and the fifth issuer overall to cross the $1 billion threshold under the Reserve Bank of India’s (RBI) discounted funding window. Following its earlier August offerings—comprising $400 million in three-year bonds at a 5.1140% coupon and $300 million in five-year notes at a 5.3180% coupon—this latest transaction brings the bank’s total cumulative fundraise to $1.1 billion, matching the total raised by the country’s largest lender, State Bank of India. Across the Indian banking sector, lenders have collectively mobilized $11.65 billion through foreign-currency dollar bonds between June and August, led by ICICI Bank, which accounted for more than a quarter of the aggregate volume. This aggressive surge in dollar bond sales reflects a broader rush among domestic financial institutions to secure offshore capital, with proceeds primarily intended to provide leverage to depositors under the central bank’s concessional dollar deposit scheme ahead of the upcoming hedging window closure.
