Bank of Baroda is preparing to raise up to $1 billion through the issuance of senior unsecured notes, according to reports from Hindu Businessline.
The potential offering aims to bolster the lender's foreign currency funding base, specifically to support higher interest rates for non-resident Indian (NRI) customers placing fresh foreign currency deposits.
CareEdge Global Ratings has assigned a BBB+/Stable long-term foreign currency rating to the proposed notes, signaling moderate credit quality with stable outlook expectations.
The timing of the potential issuance reflects a strategic shift among major Asian lenders to secure offshore liquidity.
By raising funds in dollars, Bank of Baroda can offer more competitive rates to NRIs without straining its domestic rupee liquidity.
This approach allows the bank to capture high-value deposit flows while managing its overall funding cost structure in a volatile global rate environment.