BoI raises $500 million from overseas market

State-owned Bank of India (BoI) today said it has raised $500 million (around Rs 2,700 crore) through bonds from overseas market to fund its foreign operations.

Foreign currency bonds of $500 million was issued by the bank on March 14, BoI said in a filing on the BSE.

The issue was oversubscribed by 5.4 times and is significant for being the first bond transaction by the bank offered to the institutions of US, it said.

Priced at 280 basis points over US Treasury, the bond has lowest coupon for any India 144A offering, it said.

The subscription to the bonds was worldwide, with 46% coming in from Asia, 17% from Europe and the balance 37% from the US.

The strong order book and pricing is a testimony to the credibility and strength of BoI's franchise amongst the global investor base, the bank's chairperson and managing director V R Iyer said in a statement.

BoI has 52 foreign offices in 20 countries and over 25% of its business is sourced from overseas.