BoB ascends 2 per cent on fundraising plans

The shares of Bank of Baroda (BoB) gained nearly 2 per cent in the morning trade this Thursday after reports made the rounds stating the possibility of the bank raising funds by selling bonds overseas.

BoB is all prepared to raise up to US$ 1 billion by selling bonds overseas, as reported by a leading news outlet. This manoeuvrer will serve to solidify its capital position in anticipation of a rise in credit demand.

In market parlance, the bond sale would be referred to as Regulation S as the bonds are being sold to investors residing outside the US. The bond sale is expected to open for the subscription before March 31, 2019.

Fitch Ratings has assigned a rating of ‘BBB-(EXP)’ to BoB’s proposed senior unsecured notes. These will be issued by the bank’s London branch.

Apart from showcasing signals of improving asset quality, the shares of BoB soared over 16 per cent on the BSE over the course of the last 6 months.

On Thursday, the shares of BoB opened at Rs. 121.95 and hit a high and low of Rs. 129.10 and Rs. 121.55, respectively. Near closing, the stock was trading at 129.40, up 6.46 per cent.