S&P gives Bank of India notes BB

Standard & Poor's said it assigned its BB issue rating to the proposed hybrid tier I notes to be issued by Bank of India (BBB-/stable/A-3), acting through its Jersey branch.

These notes are being issued under the bank's $1 billion medium-term notes program, S&P said, adding that the proposed hybrid tier I notes are in the form of perpetual non-cumulative subordinated debt securities with a call option 10 years from the date of issue.

The proceeds will be used to meet the bank's general funding requirements, subject to regulatory approvals, the agency added.

The rating differential between the senior unsecured notes and the proposed hybrid tier I notes reflects the junior subordinated nature and the interest deferral feature embedded in the latter, S&P said.

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