New Delhi, Jan. 26 -- Bank of Baroda, India's second-largest public sector lender, is preparing to raise about $500 million through an issue of US dollar bonds as part of its $4 billion medium-term note programme, according to a document seen by Mint.

The bank has invited bids to appoint joint lead managers for the proposed issuance, signalling the start of the process to access overseas investors through a standalone Reg-S bond issue, which may be executed in one or more tranches, depending on market conditions, according to the document. Reg-S allows an issuer to sell bonds to non-US investors, primarily in Europe and Asia, without registering the offering in the US.

An email sent to the bank seeking further details on the bond issuan...