Bank of Baroda may raise up to $1 billion via senior unsecured notes issuance

Bank of Baroda (BoB) could raise as much as $1 billion through the issuance of senior unsecured notes, with CareEdge Global Ratings granting a BBB+/Stable long‑term foreign‑currency rating to those notes.

The motive behind raising funds via senior unsecured notes may be to give added leverage to its Non‑Resident Indian (NRI) clients who wish to open fresh foreign‑currency non‑resident (bank) deposits at the bank, earning higher interest rates.

CareEdge Global also reaffirmed BoB’s long‑term foreign‑currency issuer rating and its $4 billion global medium‑term notes (GMTN) programme, maintaining the CareEdge BBB+/Stable rating.

The rating agency highlighted that BoB enjoys majority ownership by the Government of India (GoI; rated CareEdge BBB+/Stable ‘unsolicited’), which held a 64 % stake in the bank as of 31 March 2026.

BoB’s systemic importance—as the second‑largest public‑sector bank (PSB) with a 5.5 % share of domestic lending, high socio‑political relevance, contagion risk, and strong public perception—underscores the probability of receiving strong, extraordinary sovereign support if needed.

A BBB rating indicates a moderate level of safety in meeting debt obligations, accompanied by moderate credit risk.

The stable outlook for BoB, aligned with India’s sovereign outlook, reflects CareEdge Global’s expectation of continued governmental backing and the bank’s ongoing strategic relevance within the PSB sector. BoB’s rating outlook will move in step with CareEdge Global’s view on India’s sovereign rating.

Published on June 29, 2026