Bank of India Secures $400 Million in First Dollar Loan Deal Since 2012

Bank of India (BOI) has raised $400 million through a dollar-denominated syndicated loan, marking its first such deal in over a decade. The bank last accessed offshore loan markets in 2012 when it secured a $200 million two-year facility.

Strong Demand Increases Loan Size

The loan, initially planned at $300 millio,n was increased by $100 million using a greenshoe option due to strong demand from lenders. The deal attracted participation from 22 banks, including key arrangers CTBC Bank Co. and Standard Chartered Plc.

Loan Structure and Location

The loan is divided into 2 tranches—one with a 3-year tenure and the other with a 5-year tenure. It was raised through BOI’s branch at Gujarat International Finance Tec-City (GIFT City).

Global Investors Show Confidence in Indian Markets

The successful deal highlights the growing interest in Indian assets among global investors. Indian bonds have seen strong inflows, and stock markets have rebounded after a major selloff. Improving economic indicators, liquidity support from the Reserve Bank of India (RBI), and expectations of an interest rate cut next month are boosting investor confidence.

Foreign-Currency Borrowings May Rise Again

Foreign-currency loans by Indian borrowers have dropped 30% year-on-year to $3.2 billion in 2025, hitting a 4-year low. However, the trend may reverse as large Indian firms seek overseas funding. Reliance Industries Ltd. is reportedly looking to raise up to $3 billion, while Shriram Finance Ltd. is in discussions to secure $250 million through a three-year loan, along with a $1.28 billion multi-currency social loan.

About Bank of India (BoI)

Bank of India (BoI) is a public sector bank based in Bandra Kurla Complex, Mumbai. Established in 1906, it became government-owned after nationalization in 1969. BoI is one of the founding members of SWIFT, which provides efficient financial processing and communication services.

On March 26, at 1:47 PM IST, Bank of India share price was ₹106.65, up 0.65%. The stock opened at ₹105.92, reached a high of ₹107.41, and a low of ₹105.17. The bank has a market capitalisation of ₹48.55K crore, a P/E ratio of 5.70, and a dividend yield of 2.63%. Over the past 52 weeks, the stock has traded between a high of ₹157.95 and a low of ₹90.05.

Conclusion

BOI’s successful fundraising highlights renewed global interest in Indian assets. With major firms also seeking foreign loans, the trend of offshore borrowing may soon rise again.

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