 "IDBI looks for $500-750 mn overseas borrowings in second half")
Large public sector IDBI Bank is looking to raise $ 500-750 million from the overseas markets in the second half to fund the demand from companies and customers for refinance and investments in new projects.
These plans are subject to market conditions, which are turbulent now following Yuan devaluation.
N S Venkatesh, its executive director and chief financial officer, IDBI Bank said the board has given approval for FC borrowing limit upto principal outstanding amount of $ 7.5 billion equivalent including those borrowings under $ five billion Medium Term Note (MTN) programme. This is enabling provision.
Bank has already outstanding book of $ 3.5 billion and can raise upto $ four billion under the limit. At present, the outside environment is volatile and spreads have hardened following devaluation of Chinese currency (Yuan).
The lender would review market conditions and decide the course of action (fund raising) in the second half (beginning October 2015) in the current financial year. The funds would be raised in one or more tranches through bi-lateral loans, syndicated loans and lines of credit, he added.
Out of existing book, securities and loans of about $350 million is coming for redemption. Plus there is some demand from corporate for new projects and refinancing.