Bank of India Seeks $400 Million Dollar Loan After Decade-Long Hiatus
Bank of India is set to re-enter the international loan market by seeking a $400 million dollar-denominated syndicated loan, marking its first such endeavor since 2012. The loan is structured into three- and five-year tranches and is being facilitated through the bank’s branch in Gujarat International Finance Tec-City (GIFT City), India’s emerging financial hub.
CTBC Bank Co. and Standard Chartered Plc are serving as arrangers for this facility. The funds are intended for general corporate purposes, including bolstering the bank’s lending activities.
This move aligns with a broader trend among Indian financial institutions and corporations seeking to tap into global credit markets. Notably, Reliance Industries Ltd. is in the process of securing up to $3 billion, potentially marking the largest loan from India since 2023. Similarly, State Bank of India is marketing a ¥30 billion ($191 million) syndicated facility and plans to raise an additional $1.25 billion, which could become the country’s largest dollar loan from the banking sector this year.
Bank of India’s previous foray into the offshore loan market was in 2012 when it secured a $200 million two-year facility. The current loan terms reflect favorable conditions, with interest margins set at 83 basis points over the Secured Overnight Financing Rate (SOFR) for the three-year tranche and 96 basis points for the five-year tranche.
The bank’s decision to seek international funding underscores its strategic initiative to diversify funding sources and strengthen its financial position in the competitive banking sector.
