IDBI Bank to raise $300 mn through MTN

IDBI Bank hoped to raise $250-300 million (Rs 1,680 crore)through a medium-term note (MTN) programme, but would wait until market conditions were more favourable, said Executive Director and Group Head (retail banking) RK Bansal.

“We are considering an MTN issue of another $250-300 million, but will take a call after March 15, depending on spreads. Even the papers issued now are quoting at high rates. The issue will happen anytime, but we want to do it when rates are reasonable and markets are favourable,” he said.

Bansal said the bank would be comfortable raising funds at around 225 basis points (bps) above mid-swaps or so. Bansal said timing was of essence for the issue, as IDBI Bank did not want to be in a position where it would have to delay raising funds after conducting road shows. Bank of India and Bank of Baroda conducted road shows but deferred their MTN issues after market conditions became unfavourable following Greece's debt problems.