The board of Bank of India approved to raise capital up to Rs 5,000 crore through the issue of basel-III compliant Tier-I and Tier-II bonds worth Rs 2,500 crore each.
The approved funds are designated for the financial year 2025-26, according to an exchange filing on Wednesday.
In March, the lender secured $400 million through a dollar syndicated loan, marking its first such transaction since 2012 and expanding the roster of Indian borrowers accessing international credit markets, according to Bloomberg, citing sources.
The unique nature of the deal generated strong interest, enabling the bank to increase the loan amount by $100 million through the greenshoe option, as per the sources, who chose to remain anonymous. The facility attracted 22 lenders in total, including arrangers CTBC Bank Co. and Standard Chartered Plc, the sources added.
Shares of Bank of India closed 2.27% lower at Rs 115.15 apiece on the NSE, compared to a 0.01% fall in the benchmark Nifty 50. The stock has fallen 25.75% in the last 12 months but risen 13% on a year-to-date basis.
Out of five analysts tracking the company, three recommend a 'buy' rating on the stock, one suggests 'hold' and one gave 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 2.2%.
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