IDBI Bank raises $225 million loan

State-run IDBI Bank has raised a $225-million foreign currency loan to fuel its business growth and plans to raise $1.5 billion through a bond issue by early next year, its chairman said.

The lender mopped $225 million through a syndicated loan programme and has received participation from 21 banks to raise the amount, Chairman and Managing Director Yogesh Agarwal told reporters here.

“We initially went to the market to raise $100 million but got a very good response from 21 banks and it was over-subscribed 2.5 times,” Agarwal said.

Recently, the country’s largest lender, State Bank of India, had raised $750 million (about Rs 3,600 crore) through a bond issue in overseas markets. IDBI Bank has raised the loan for a tenure of one year at an interest rate of 6.2 per cent, Agarwal said.

 

Besides, the bank has received board approval to raise another $1.5 billion through a medium-term notes programme. “We expect to hit the market by January 2010 and are waiting for clarity from the government (on the matter). We are open to all options,” he said.

The bank, which has a network of 680 branches, plans to open 1,000 more ATMs by December 2010, said the Chief Managing Director.