The rarity factor helped attract strong interest in the deal, allowing the borrower to increase the size by US$100 million via the so-called greenshoe option, said the people, who asked not to be named discussing private matters. The facility drew a total of 22 lenders, including arrangers CTBC Bank Co, Ltd, and Standard Chartered Plc, the people said.

The loan is equally split into three- and five-year tranches, and raised via Bank of India’s branch located in Gujarat International Finance Tec-City, said the people. A spokesperson for Bank of India declined to comment. 

The deal is the latest sign of the growing appeal of Indian assets to global investors and lenders, with the Asian nation’s bonds posting strong monthly inflows, and stocks recuperating from a trillion dollar selloff. The return of confidence stems from improving economic indicators, the Indian central bank’s liquidity injections, and bets on an interest rate cut next month.

Foreign-currency loans taken out by Indian borrowers have declined 30% on year to US$3.2 billion so far this year, and are running at a four-year low, according to Bloomberg-compiled data. But that trend could soon reverse. 

Billionaire Mukesh Ambani’s conglomerate Reliance Industries Ltd is currently in the market for a loan of as much as US$3 billion. Shriram Finance Ltd, India’s biggest truck financier, is also in talks with banks to raise as much as US$250 million via a three-year facility. This is in addition to the company’s US$1.28 billion multi-currency social loan that is in syndication.

Bank of India last tapped the offshore loan markets in 2012, when it raised a US$200 million two-year facility, according to Bloomberg-compiled data. 

Uploaded by Liza Shireen Koshy