Uti Arm Taps Nomura For Loan Syndication

The wholly-owned subsidiary of Unit Trust of India has already submitted three to four funding proposals to Nomura Securities, which in turn has agreed to arrange for the syndication of these credit packages.

The two securities companies are also negotiating on a possible tie-up for financing infrastructural projects in India, a top UTI Securities source told Business Standard. However, the dialogue is currently at a preliminary stage.

The pre-feasibility and feasibility studies of the proposals submitted with Nomura have all been completed.The loans from Japanese lending institutions which Nomura has agreed to arrange are at relatively cheap rates of between 3 and 8 per cent.

However, the Japanese funding is expected to come with a lot of specifications and conditionalities. Japanese lending institutions have in the past shown their unwillingness to extend financial assistance unless Japanese companies are roped into these ventures.