Bank of India is issuing $300-$400 million worth of Basel III compliant bonds in overseas markets. This will be the first such issue out of India and only a handful of Asian entities have issued Basel III compliant bonds so far. One of the key differences between bonds issued under Basel III and Basel II is that buyers of Basel III compliant bonds will have to absorb losses under certain conditions such as a dramatic fall in capital levels. Any future bond issuance for capital-boosting purpose will necessarily have to be a Basel III compliant bond, though it will be far more expensive for banks to raise capital via such bonds. V.R. Iyer, CMD of the bank, said the bank is exploring opportunities for such a bond issuance and that the bank has a headroom to raise Rs 2,400 crore to add to its tier-II capital. RBI, which has said it is in agreement with the terms of issue of such bonds, is expected to give a clearance for the bank. The issue can be expected as early as April.