Key Quantitative Figures

  • Issuance amount: USD 400 million
  • Instrument type: Senior Unsecured Reg-S, Fixed Rate Notes
  • All-in-Yield: 5.389% per annum
  • Original coupon: 5.318% per annum payable semi-annually in arrears
  • Original maturity: 5 years
  • Final maturity date: 20th August 2031
  • Total outstanding series after tap issuance: USD 700 million (consolidating with existing USD 300 million notes)

Dates of Action

  • Issuance conclusion date: 21 August 2026
  • Expected issuance date: 27 August 2026
  • Pricing supplement date: 21 August 2026

Parties Involved

  • Issuer: Bank of Baroda
  • Issuing branch: IFSCBU Gift City, Gandhinagar branch
  • Listing venues: Singapore Stock Exchange, India INX Gift City, and NSE-IX Exchange Gift City
  • Rating agencies: Fitch Ratings, S&P Global Ratings, CareEdge Global
  • Regulatory recipients: BSE Ltd., National Stock Exchange of India Ltd.

Ratings Confirmation

Fitch Ratings Confirmation (21 August 2026)

  • Senior Unsecured Long-Term Rating: 'BBB-' (confirmed)
  • Senior Unsecured Long-Term Rating (xgs): 'BB(xgs)' (confirmed)
  • Confirmation states tap issuance will not result in withdrawal or downgrade of ratings
  • Ratings based on documents and information provided by issuer and other parties

S&P Global Ratings Confirmation (21 August 2026)

  • Rating: 'BBB' for proposed USD 400,000,000 5.318% Senior Notes due 2031
  • Notes to be consolidated with existing USD 300,000,000 5.318% Senior Notes due 2031
  • Under US$4,000,000,000 Medium Term Note Programme

CareEdge Global Ratings (21 August 2026)

  • Long-term foreign currency issuer rating: 'CareEdge BBB+/Stable'
  • USD 4 billion global medium-term notes: 'CareEdge BBB+/Stable'
  • USD 1.1 billion senior unsecured notes: 'CareEdge BBB+/Stable'
  • Specific instrument ratings:
  • XS3424472101 (USD 400 million, 5.114%, due 2029): 'CareEdge BBB+/Stable'
  • XS3424472010 (USD 300 million, 5.318%, due 2031): 'CareEdge BBB+/Stable'
  • XS3424472010 (USD 400 million tap, 5.318%, due 2031): 'CareEdge BBB+/Stable'

Rationale for CareEdge Rating

  • Bank benefits from majority ownership by Government of India (~64% stake as of March 31, 2026)
  • Systemic importance as second-largest public sector bank with 5.5% share in domestic advances
  • Demonstrated history of capital infusion by GoI (Rs 124 billion during FY18-FY20)
  • Robust domestic market position with 8,600+ domestic branches and 80 overseas offices
  • Comfortable capitalisation with CAR of 15.8% and CET-1 ratio of 13.2% as of March 2026
  • Strong funding profile with CASA ratio of 37.2% and cost of deposits at 4.9% in FY26
  • Asset quality improved with GNPA at 1.9% and NNPA at 0.4% as of March 2026
  • Profitability moderated with RoA of 1.0% in FY26

Financial Impact

The tap issuance increases the total outstanding series to USD 700 million, providing additional foreign currency funding to the bank. The financial impact is quantified as a USD 400 million inflow through debt securities issuance.

Capital Structure Impact

The issuance represents additional senior unsecured debt obligations ranking pari passu with other senior debt of the bank. No equity dilution or change in share capital structure.

Forward-looking Information

CareEdge maintains stable outlook, expecting continued sovereign support and strategic importance within public sector banking framework. Rating sensitivities include changes in sovereign rating, dilution of government support philosophy, or material deterioration in capitalisation or asset quality.