Bank of India is marketing its first dollar syndicated loan since 2012 of as much as $400 million, people familiar with the matter said, at a time when more Indian borrowers are tapping global credit markets.

The Indian lender is raising the loan — split into three- and five-year tranches — via its branch located in Gujarat International Finance Tec-City, India’s newest financial hub, said the people, who asked not to be named discussing private matters. CTBC Bank Co. and Standard Chartered Plc are the arrangers of the facility, the people added. 

An external media representative for Bank of India confirmed the receipt of an email requesting comment, but wasn’t immediately able to give further details when contacted by Bloomberg News.

Bank of India joins a slew of other Indian borrowers seeking to raise foreign currency debt this year. Reliance Industries Ltd. is looking to borrow as much as $3 billion, in what could be the largest loan from the country since 2023, while Shriram Finance Ltd. is planning to syndicate part of a $1.28 billion multi-currency social financing, the biggest ever offshore deal from an Indian shadow lender.

Meanwhile, State Bank of India is marketing a ¥30 billion ($191 million) syndicated facility and is planning to raise another borrowing of as much as $1.25 billion, in what could be the country’s biggest dollar loan from the banking sector this year. All this adds to the already busy deal pipeline from Asia Pacific, setting the stage for a likely rebound in loan volumes after three years of decline. 

Bank of India last tapped the offshore loan markets in 2012, when it raised a $200 million two-year facility, according to Bloomberg-compiled data. That deal paid an interest margin of 175 basis points over the then-prevailing London Interbank Offered Rate benchmark, the data shows. 

This is a stark contrast to the lender’s latest loan, which pays a margin of 83 basis points over the risk-free Secured Overnight Financing Rate for the three-year piece and 96 basis points for the five-year portion, the people said. 

Proceeds of the latest loan, which carries a base size of $300 million split equally across the two tranches, are for general corporate purposes, including lending activities, the people added.

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