IDBI Bank hired three banks to help it get $225 million (around Rs 1,225 crore) of five-year loans, according to people familiar with the development.
Australia & New Zealand Banking Group, Royal Bank of Scotland Group Plc and Deutsche Bank AG were the three banks given the mandate for loan syndication, the person said, declining to be identified as the talks were private.
Mumbai-based IDBI Bank, which has 680 branches across India according to its website, has identified two Indian lenders as potential acquisition targets, according to Chairman Yogesh Agarwal.
The loans would be in two parts — one of at least $115 million and the other for up to $110 million — and the total facility would pay about 205 basis points above the London interbank offered rate (Libor), one of the people said. That will yield an annual coupon of between 2.25 per cent and 2.35 per cent, the person said. One basis point is 0.01 percentage point.
IDBI officials were unavailable for immediate comment.
