Mumbai: Bank of India has successfully raised ₹2,500 crore through the issuance of Basel III compliant Tier II bonds, marking a significant step in enhancing the bank’s capital adequacy and supporting long-term business growth. The bonds were allotted today on a private placement basis following the issue period that opened and closed on December 10, 2025.
Tier II Bonds Details and Subscription
The bond issue consisted of a base size of ₹1,000 crore with an additional green-shoe option of ₹1,500 crore, both of which were fully subscribed. The Tier II bonds are non-convertible, taxable, subordinated, unsecured debentures issued under Series XVIII, carrying a coupon rate of 7.28% per annum. A total of 2,500 bonds were allotted to 14 investors, with the ISIN INE084A08227 assigned to the securities.
The bank received 68 bids totaling ₹4,982 crore, of which 29 bids amounting to ₹2,500 crore were accepted. The deemed date of allotment is December 12, 2025.
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Strategic Use of Funds
Bank of India stated that the funds raised through this Tier II issuance are intended to augment its overall capital, enhance long-term resources, and maintain a healthy capital buffer in compliance with RBI guidelines. The proceeds are not earmarked for any specific project but will support normal business activities and enable the bank to expand credit across key sectors of the economy.
About Bank of India
Bank of India (BOI), headquartered in Mumbai, is a leading public sector bank in India offering a comprehensive range of banking services across retail, corporate, and international operations. Established in 1906, BOI has played a pivotal role in promoting financial inclusion, credit growth, and supporting India’s economic development.
