IDBI Bank to raise $250 m via ADB-guaranteed bonds

IDBI Bank is looking to raise $250 million in the next three months through a bond issue which will be partially guaranteed by the Asian Development Bank (ADB). The bonds will be privately placed but carry a partial guarantee of the ADB which reduces its fund raising costs. They will be issued in the Asian region.

IDBI Bank is already in touch with ADB and hopes to come out with the issue in the next “2-3 months”. ADB will give partial guarantee to the bond issue through its credit guarantee scheme. ADB board is expected to give a final clearance for the scheme soon after which IDBI Bank can go ahead with the issue. crackcrack