Bank of India Raises ₹2,500 Crore Through Basel III Tier II Bonds
Bank of India has successfully raised ₹2,500 crore through Basel III compliant Tier II bonds issued on a private placement basis. The bonds carry a 7.28% coupon rate with 14 allottees and were allotted on 12 December 2025.
Mumbai, December 12, 2025:
Bank of India has successfully mobilised ₹2,500 crore through the issuance of Basel III compliant Tier II bonds, strengthening the bank’s capital position and supporting future business growth.
The bonds were allotted today on a private placement basis, following the opening and closing of the issue on December 10, 2025. The issue consisted of a base size of ₹1,000 crore, along with a green-shoe option of ₹1,500 crore, both of which were fully subscribed.
According to the bank, the Tier II instruments are non-convertible, taxable, subordinated, unsecured debentures issued under Series XVIII. The bonds carry a coupon rate of 7.28% per annum, and a total of 2,500 bonds were allotted to 14 investors. The securities have been assigned the ISIN: INE084A08227.
With the deemed date of allotment set for December 12, 2025, the funds raised will help enhance the bank’s overall capital adequacy in line with regulatory requirements.
Bank of India has communicated that this issuance is part of its ongoing plan to maintain a healthy capital buffer and support credit expansion across key sectors of the economy.