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Growing Interest in Yen-Denominated Borrowing: Bank of India Executes Facility Agreement for ¥15 Billion

Written by: Team Angel OneUpdated on: Apr 1, 2025, 3:46 PM IST
Bank of India secures ¥15 billion syndicated loan through GIFT City branch for overseas operations; share price rises 2.83%.
Growing Interest in Yen-Denominated Borrowing: Bank of India Executes Facility Agreement for ¥15 Billion
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Bank of India (BOI) announced the execution of a syndicated loan agreement worth ¥15 billion (approximately $100 million). The funds are being raised through its International Banking Unit (IBU) based in GIFT City, Gujarat, and are intended for on-lending and general corporate purposes across the bank’s overseas branches.

Details of the Fundraising

According to the official press release, the ¥15 billion facility agreement was finalised by BOI’s IBU Gift City Branch. The expected receipt of funds is scheduled for 27th March 2025. This strategic move underlines the growing importance of GIFT City as a financial hub enabling Indian banks to access global capital markets efficiently.

Strengthening International Operations

The syndicated loan facility marks another step towards strengthening BOI’s global presence. By raising capital in the Japanese yen, the bank leverages the low-interest-rate environment prevalent in Japan, a tactic increasingly being adopted by Indian financial institutions looking to optimise their borrowing costs and diversify funding sources.

Growing Interest in Yen-Denominated Borrowings

Bank of India joins a growing list of Indian borrowers who have recently tapped into the yen loan market, including major entities such as Reliance Industries, REC Ltd., and Tata Semiconductor. The Japanese market, with its stable financial environment and attractive rates, continues to be a compelling option for Indian corporations.

Share Price Reaction

Bank of India’s share price traded higher by 2.83% as of 3:21 PM on April 1, 2025, reflecting positive sentiment around the fundraising initiative and its implications for the bank’s overseas operations.

Conclusion 

Bank of India’s share price bucked the weak market trend and has shown a significant recovery from the lower level of ₹106.26 on the NSE, following this development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Apr 1, 2025, 3:46 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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