Media reported that INS that Bank of Baroda, the second largest state-owned lender, plans to raise Rs 1,000 crore by issuing bonds on infrastructure and affordable housing on August 12.

“The bond has a probable maturity of seven years with a base issuance of Rs 250 crore and a green shoe of Rs 750 crore,” the source said.

The auction of infrastructure and affordable housing bonds is expected to take place on the BSE’s tender platform on August 12.

During the tender period, the bonds are expected to set better denominations given the higher demand for PSU bonds.

The bond has been rated ‘AAA’ by ICRA and India Ratings and Research with a ‘stable’ outlook.

On June 27, the bank’s board approved raising Rs 5,000 crore through long-term bonds to finance infrastructure and affordable housing.

The bank is expected to raise Rs 5,000 crore in tranches, the sources said.

On July 16, the bank’s investment committee approved the raising of Rs 1,000 crore through these bonds.