Bank of India, a leading public sector bank in India, has successfully raised a syndicated term loan amounting to USD 300 million through its International Banking Unit (IBU) located at Gift City. This funding marks a significant achievement for the bank in accessing international financial markets to support its operations and future growth strategies.
The loan has been structured into two distinct tranches to cater to varied financial requirements. The first tranche of USD 150 million has a tenure of three years, while the second tranche of USD 150 million comes with a longer tenure of five years. This structured approach ensures that the funds are aligned with the bank’s medium- and long-term financial objectives.
The funds were received on December 30, 2024, from the Mandated Lead Arranger Underwriter and Book Runner Banks (MLAUBs), showcasing the bank’s credibility and ability to attract global financial institutions. The funds will be syndicated in the March quarter of FY 2024-25, further strengthening the bank’s liquidity position and enhancing its capacity to meet diverse financial needs.
This transaction not only underscores Bank of India’s robust standing in the global banking ecosystem but also highlights its strategic focus on leveraging Gift City’s International Banking Unit for raising international capital. The proceeds from this loan will likely be utilized for various operational purposes, including expanding lending capabilities, supporting trade finance, and enhancing the bank’s overall capital adequacy.
Key Highlights:
- Loan Amount: USD 300 million
- Tenure: USD 150 million for 3 years and USD 150 million for 5 years
- Branch: International Banking Unit (IBU), Gift City
- Disbursement Date: December 30, 2024
- Syndication Timeline: March quarter of FY 2024-25
