Public sector lender, IDBI Bank, in order to fund its overseas business growth is planning to raise another $500 million amounting about Rs 2,700 crore through foreign currency bonds by March 2013. The issue would be made under the $1.5-billion Medium Term Note (MTN) programme listed on the Singapore Stock Exchange. Of the total limit of $1.5 billion, the bank had raised $1 billion in two tranches of $500 million each.
The bank last week had managed to raise $500 million from foreign currency bonds. The transaction which had received an overwhelming response attracted interest from a diversified range of foreign investors including asset managers and banks and had seen issue oversubscribing by nine times. The final coupon fixed was 4.375%.
The long-term notes denominated in USD were issued by the Dubai International Financial Centre (DIFC) branch of IDBI Bank and around 68% of the allocation was made to Asian investors, 23% and 9% to European investors and Middle East investors respectively. Besides, the bank also plans to double its MTN programme to $3 billion.
