State-owned Bank of Baroda (BoB) on Thursday said it has raised Rs 2,500 crore through bonds to fund business growth.

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The fund raised through the issuance of Basel III Compliant Tier-II Bonds Series XXVI and the bank received a strong response from investors, which allowed it to price the issue at a very competitive coupon rate of 7.57 per cent, BoB said in a statement.

These bonds are unsecured, listed, rated, subordinated, non-convertible, taxable, redeemable having a tenor of 10 years from deemed date of allotment with a 5-year call option, it said.

The bidding for the bonds took place on Wednesday while the allotment was done on Thursday, as per the statement.

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