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 its decision to exercise the call option on its 9.04% Additional Tier 1 Bonds Series VI, setting January 13, 2026 as the record date for this corporate action. The announcement was made through a regulatory filing dated December 22, 2025, in compliance with Regulation 60 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Bond Details and Terms

The bonds in question are the 9.04% Additional Tier 1 Bonds Series VI with ISIN number INE084A08136. These bonds were originally issued on January 28, 2021, pursuant to the terms mentioned in the Information Memorandum dated January 27, 2021.

Call Option Exercise Process

The bank has decided to exercise its call option on these bonds, with the call option becoming exercisable on January 28, 2026. As per the announcement, Tuesday, January 13, 2026 has been declared as the record date for determining eligible bondholders.

On January 28, 2026, Bank of India will make payment of both the broken period interest and the call option amount (principal) to holders of the bonds as on the record date. This payment structure ensures that bondholders receive their due interest for the period along with the principal redemption.

Impact on Bondholders

Upon completion of the payment process on January 28, 2026, Bank of India's liability towards the bondholders will cease entirely. The bank has clarified that all bondholder rights, including payment obligations and other related rights, will stand extinguished once the call option amount and broken period interest are paid to eligible bondholders.

This call option exercise represents a standard corporate action for Additional Tier 1 bonds, allowing the issuing bank to redeem the securities at predetermined dates as specified in the original bond terms and conditions established during the 2021 issuance.