REC Limited has signed a memorandum of understanding (MoU) with Bank of Baroda to facilitate joint lending to finance power, infrastructure and logistics projects in the country over the next three ye
The bank will issue 10-year tier-II bonds worth Rs 2,000 crore, with the greenshoe option to raise another Rs 3000 crore. Further, the bank will issue 7-year infrastructure bonds amounting to Rs 2,000 crore, with a greenshoe option to raise an additional Rs 8,000 crore.
According to news reports, the public sector lender is looking at raising about Rs 10,000 crore through infrastructure bonds. As of September-end, the banks capital adequacy ratio as per Basel-III requirements was 15.30%, compared to 15.25% a year ago. The CET 1 ratio stood at 11.57%, compared to 10.95% a year ago. The additional tier-I ratio as of September end was 1.62%, compared to 1.86% a year ago.
Bank of Baroda share price has rallied 84 per cent in the last one year against a 14 per cent gain in the equity benchmark Sensex, thanks to its strong credit growth and improving asset quality.