IDBI Bank to raise $500 million through bonds to fund overseas business growth

NEW DELHI: State-owned IDBI Bank has said that it plans to raise another USD 500 million (about Rs 2,700 crore) through bonds to fund its overseas business growth.

"We will be raising USD 500 million from foreign currency bonds by March 2013," IDBI Bank Executive Director Melwyn Rego told PTI.

The issue would be made under the USD 1.5 billion Medium Term Note (MTN) programme listed on the Singapore Stock Exchange.

Of the total limit, the bank has raised USD 1 billion in two tranches of USD 500 million each.

Last week, the bank raised USD 500 million from foreign currency bonds.

The transaction received an overwhelming response and the issue was oversubscribed by nine times, Rego said.

The long-term notes denominated in USD were issued by the Dubai International Financial Centre (DIFC) branch of IDBI Bank.

The final coupon was 4.375 per cent (fixed), he said, adding, the transaction attracted interest from a diversified range of foreign investors including asset managers and banks.

Around 68 per cent of the allocation was made to Asian investors, 23 per cent to European investors and 9 per cent to investors in the Middle East, he said.

The bank also plans to double its MTN programme to USD 3 billion.