3 weeks ago
Bank of India plans $1 billion raise via MTN programme
Bank of India is a large bank in India.
It wants to collect money from investors around the world.
The bank plans to borrow up to one billion dollars using something called a Medium-Term Note programme.
This means it will sell bonds to investors and pay them back in three to five years.
The money will be raised in several steps until the end of December 2026.
These bonds will be issued from the bank's branch in GIFT City in the Indian state of Gujarat.
The bank already collected about $207 million from Indians living abroad between June and July 2026.
These special foreign currency deposits are called FCNR-B deposits.
On these deposits, the bank is offering interest rates of 6 to 6.5 percent.
The bank's board will meet on August 14, 2026 to give final approval to the plan.
Bank of India plans to raise up to $1 billion through a Medium-Term Note (MTN) Programme by issuing 3- to 5-year USD bonds.
The fund raising will be done in multiple tranches up to the end of December 2026 through its BOI GIFT city branch in Gujarat.
Between June 5 and July 30, 2026, BoI mobilised $207.46 million via FCNR-B deposits of 3-5 years tenor.
The bank is offering interest rates of 6%-6.25% on FCNR-B deposits below $100,000 and 6.25%-6.50% on deposits of $100,000 and above.
BoI's Board of Directors will meet on August 14, 2026 to consider and approve raising foreign currency funds via the MTN Programme.
- Who
- Bank of India (BoI), a public sector bank, with its Board of Directors set to consider the plan.
- What
- Planning to raise up to $1 billion via a Medium-Term Note (MTN) Programme through 3- to 5-year USD bonds, while mobilising FCNR-B deposits from Non-Resident Indians.
- Where
- India, with bond issuance through BoI's GIFT (Gujarat International Finance Tec) city branch in Gujarat; FCNR-B data reported in the Lok Sabha.
- When
- Announced on August 10, 2026; fund raising in multiple tranches until end of December 2026, with a board meeting on August 14, 2026.
- Why
- Because Non-Resident Indians are seeking leverage facilities to place fresh FCNR-B deposits under the RBI's limited-period concessional swap window.
Key facts
- Bank
- Bank of India (BoI)
- Fundraising target
- Up to $1 billion
- Instrument
- Medium-Term Note (MTN) Programme; 3- to 5-year USD bonds
- Fundraising timeline
- Multiple tranches up to end of December 2026
- Board meeting
- August 14, 2026
- FCNR-B deposits mobilised
- $207.46 million (June 5 - July 30, 2026), 3-5 year tenor
- FCNR-B interest rates
- 6%-6.25% for deposits under $100,000; 6.25%-6.50% for $100,000 and above
- Issuance branch
- BOI GIFT city branch, Gujarat
Sources
Related news
Indian Bank to raise $400 million via ECB this week
ICICI Bank Mobilises $17.88 Billion Under RBI FCNR(B) Facility
India Draws Record $127 Billion Through Special FCNR Window
Banks Mobilise Record $127.226 Billion Through FCNR(B) Deposit Drive
India’s Foreign Currency Facility Draws $72.85 Billion
RBI shortens FCNR(B) swap scheme as inflows hit $56.8 billion
Modi’s Frugality Appeal Contrasts With Extensive Foreign Travel
Modi Sets Roadmap for Collaborative, Water-Secure India’s Future
Congress Seeks Drought Declaration for Rain-Deficient Gujarat Districts
ED Raids 12 Locations Across Four States in Parimatch Probe
Gujarat Seizes 42.9 Tonnes Adulterated Food, Cancels Drug Licences
