Bank of India , one of India's leading public sector banks, has successfully completed a significant infrastructure bond issuance, raising ₹10,000 crore through its Long Term Infrastructure Bonds Series IV. The issue, which opened and closed on December 23, 2025, demonstrates strong investor confidence in the bank's infrastructure financing capabilities.

Bond Issue Performance

The infrastructure bond issue witnessed exceptional market response, with the bank receiving overwhelming investor interest:

Issue Structure and Details

The bonds are structured as unsecured, subordinated, redeemable, non-convertible, taxable, and listed instruments with a face value of ₹1 lakh each. The bank issued a total of 10,00,000 bonds, with the issue opening and closing on the same day - December 23, 2025.

Strategic Infrastructure Financing Initiative

This successful bond issuance represents a significant milestone in Bank of India's infrastructure financing strategy. The substantial oversubscription of 3.06 times against the base issue size reflects strong institutional investor confidence in the bank's credit profile and India's infrastructure development prospects.

Previous Financial Performance Context

The successful bond issuance builds upon Bank of India's strong financial performance, including an 82.5% year-on-year increase in Q4 net profit reaching ₹2,626.00 crore, along with improved asset quality metrics that have strengthened the bank's overall financial position.

Market Implications

The successful completion of this infrastructure bond issue positions Bank of India as a key player in India's infrastructure financing landscape. The funds raised will support long-term infrastructure projects across various sectors, contributing to the nation's ongoing infrastructure development initiatives while providing the bank with stable, long-term funding sources for critical infrastructure financing needs.

Bank of India has announced that its board will meet on June 26, 2025, to consider raising funds through long-term infrastructure bonds. This move signals a potential shift in the bank's funding strategy and could have significant implications for its ability to support infrastructure projects and diversify its funding sources.

Proposal Under Review

The state-owned lender's board meeting will focus on evaluating a proposal aimed at generating funds through long-term infrastructure bonds. This strategic consideration comes at a time when infrastructure development remains a key focus area for India's economic growth.

Recent Fundraising and Future Plans

Bank of India has already demonstrated its commitment to infrastructure financing. In the fiscal year 2024-25, the bank successfully raised ₹2,690.00 crore through a 10-year infrastructure bond. Looking ahead, Bank of India has plans to raise up to ₹5,000.00 crore in FY25-26 through Basel-III compliant bonds, further strengthening its capital base and funding capabilities.

Potential Impact

If approved, this initiative could provide Bank of India with several advantages:

1. Enhanced Funding Capacity: Long-term bonds could offer a stable source of funding, potentially at favorable rates, allowing the bank to support large-scale infrastructure projects.

2. Asset-Liability Management: Infrastructure bonds typically have longer tenures, which could help the bank better match its long-term assets with appropriate liabilities.

3. Support for Infrastructure Sector: By raising dedicated funds, Bank of India could position itself as a significant player in financing India's growing infrastructure needs.

Market Implications

The banking sector is closely watching this development, as it could set a precedent for other public sector banks looking to expand their funding avenues. Infrastructure financing has been a challenging area for many banks due to the long gestation periods of projects and associated risks.

Bank of India's move to explore long-term infrastructure bonds reflects the evolving landscape of infrastructure financing in India. As the proposal undergoes review, stakeholders will be keen to see how this potential new funding stream could bolster the bank's role in supporting critical infrastructure projects across the country.

While specific details about the size of the potential bond issue or the exact nature of infrastructure projects it aims to support have not been disclosed, the bank's recent fundraising activities and future plans indicate a strong focus on strengthening its capital base and expanding its infrastructure financing capabilities. Further announcements are expected following the board meeting on June 26, 2025.