BoI to raise $250 m for global foray

Bank of India (BoI), as part of its overseas plans, is planning to raise foreign currency funds through medium term bonds. The plan would be send to the board's approval shortly.

"We are on a drive to enhance our international presence by upgrading the existing network as well as by venturing into new territories. For our overseas expansion plans we require large amount of foreign currency. We are planning to raise $250 million once the board approves the same," said M Venugopalan, chairman and managing director, BoI.

"We intend to issue foreign currency bonds of five-year period anywhere between April and May," Venugopalan said. BoI is in the process of upgrading its Shenzhen and Vietnam representative offices to branch offices. The bank may also open representative offices in Doha and Beijing.

The bank is awaiting for the completion of the mandatory procedures. BoI also has plans to expand its international network by opening more branches in the SAARC region, Africa and Europe.

Meanwhile, the bank had made an attempt to take over a bank in Indonesia that could not materialise.

"It is better to acquire a smaller bank to make an entry in new country and we may opt for that if the deal suits us. We are interested in venturing into Gulf countries and plans for the same are under consideration. We would like present our self in Karanchi in Pakistan too if the political environment seems promising for such venture," said Venugopalan.

Venugopalan stated that the bank requires $250 according to immediate projections and may raise more consequently.

However, he stated that the bank might not collect entire the $250 million in one shot. BoI claims that about 20 per cent of its entire business and 12 per cent of profit is generated from its overseas operations.

At present the bank has presence in 12 countries through 22 branches. BoI has already received board approval for raising Rs 100 crore through an initial public offer (IPO).

The IPO is likely to hit the market in May-June, Venugopalan said.