Punjab National Bank (PNB) has sought government permission to raise $215 million overseas to finance a debt restructuring package for textiles and steel companies and is also planning to raise Rs 250-300 crore subordinated debt to augment its tier-II capital. | |
| "We have already applied to the finance ministry (for the foreign currency borrowing) and are awaiting an approval," said a bank executive. |
| |
| The bank has not yet decided whether the funds would be raised through a bond issue or through a loan. |
| |
| A senior bank executive said that the timing for raising the subordinated debt has not been decided but the funds would be raised domestically. |
| |
| "At the moment we are not short of funds but propose to raise it by the end of the current financial year," he added. |
| |
| The government had tightened its foreign loan policy in November and said external borrowings above $50 million would be allowed only for equipment imports and infrastructure projects. |
| |
| Other Indian companies such as Industrial Development Bank of India (IDBI) and state-run utility National Thermal Power Corporation are also looking to raise cheaper funds from the international market. |
| |
| IDBI plans to raise $300 million through a five-year overseas bond issue to restructure the debt of steel companies, while NTPC plans to mop up $200 million via a seven-year Euro bond issue to fund ongoing and new projects. |
| |
|
| |
