Idbi Plans $170m Debt Foray
The Industrial Development Bank of India (IDBI) has decided to tap the overseas debt market with an issue of $170 million. The financial institution plans the foray sometime in March 1997.
IDBI is confident of raising funds at an all-inclusive cost of 75 basis points over Libor. The FI has also negotiated a $50 million bilateral, seven-year loan facility with Asahi Bank Ltd for onlending for capital goods imports and project related expenditure.
With the raising of the $50 million loan from Asahi Bank, IDBI has garnered $380 million in the current financial year out of $550 million external commercial borrowings limit approved by the government of India.
In a press note, the financial institution has said that it plans to launch a capital market transaction in Euromarkets for raising the balance amount of $170 million before the close of the fiscal 1996-97.
The $170m loan will be advanced by the Hong Kong branch of Asahi Bank and was arranged by Asahi Finance.
According to a press note, the loan which has an all in cost of 60 basis points over Libor is the finest pricing achieved by an Indian borrower for such a maturity.
The pricing on the loan reflects the announcement by Moodys of an investment-grade Baa3 for IDBI.