NEW DELHI: Bank of Baroda (BoB) shared surged nearly 2 per cent in morning trade on Thursday after reports suggested that the bank is planning to raise funds by selling bonds overseas.As per an ET report, Bank of Baroda is set to raise up to $1 billion by selling bonds overseas to solidify its capital position ahead of a likely jump in credit demand.
The bond sale would be known as Regulation S in market parlance, whereby bonds are offered to investors outside the US.
The bond sale is likely to open for subscription before this financial year comes to a close on March 31, the report further added.Fitch Ratings has assigned an expected rating of 'BBB-(EXP)' to Bank of Baroda's proposed senior unsecured notes, which will be issued by the bank's London branch, the global rating company had said in a release on Monday.
In the past six months, Bank of Baroda shares surged more than 16 per cent on the BSE amid signs of improving asset quality.
Around 9:50 am, shares of the company traded 1.60 per cent higher at Rs 123.50 apiece.