Bank of India mulls raising $200mn via foreign debt

The proceeds to be used to fund overseas expansion.

Bank of India is going to raise $200 million (Rs 921 crore) in foreign debt through external commercial borrowing to fund its overseas expansion plan. The bank has appointed ANZ Bank, Standard Chartered Bank, Bank of America, Natixis, Royal Bank of Scotland, Merrill Lynch and Mizuho as lead arrangers.

The interest rate offered would be Libor plus 129 basis points for the three-year bullet loan. Unlike in a term loan, in a bullet loan the balloon payment is made at the end of the term.

“We have 29 branches overseas. This is a small amount for a large bank like us. The money will be used in one transaction itself to fund expansion,” a senior official said.

Bank of India has 29 branches outside the country, including a branch and five representative offices in London and Paris. Besides, it has representative offices in New York, Tokyo, Hong-Kong and Singapore.

View the full story in Financial Chronicle.