Bank of India Issues Basel III Compliant Tier II Bonds for ₹2,500 Crore

Bank of India has successfully issued Basel III Compliant Tier II Bonds amounting to ₹2,500 Crore. The issue, including a base size of ₹1,000 crore and a Green Shoe option of ₹1,500 crore, was oversubscribed by 4.98 times. The bank has decided to accept bids of ₹2,500 Crore at a coupon rate of 7.28%. The bond issue opened and closed on December 10, 2025.

Successful Bond Issuance

Bank of India announced the successful issuance of Basel III Compliant Tier II Bonds totaling ₹2,500 Crore. This includes a base issue size of ₹1,000 crore along with a Green Shoe option of ₹1,500 crore.

Issue Oversubscription

The bond issue witnessed strong investor demand, resulting in an oversubscription of 4.98 times against the base issue size. This positive response allowed the bank to accept bids up to ₹2,500 Crore at a coupon rate of 7.28%.

Bond Details

The bonds are Non-convertible, Taxable, Subordinated, Unsecured, and fully paid-up Basel III compliant Tier II Bonds Series XVIII in the nature of debentures. A total of 2,500 bonds, each with a face value of ₹1.00 crore, were issued. The issue opened and closed on December 10, 2025, with the deemed date of allotment being December 12, 2025. The bank received 68 bids and accepted 29 bids through the NSE Electronic Bidding Platform.

Source: BSE

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