Idbi Signs Loan Of $100m With 2 Yr Maturity

The Industrial Development Bank of India (IDBI) has signed a $100 million syndicated term loan facility for two-year maturity.

The loan has been negotiated for refinancing $100 million floating rate notes (FRN) due in 1999 and is the lowest spread over LIBOR achieved by an Indian entity for such maturity, an IDBI release said.

In July 1994, the development bank entered the international capital market by issuing a 5-year $100 million FRN with a call and put option at the end of three years. IDBI has exercised the call option to prepay the FRN and refinance the same at a lower margin by way of the term loan for the remaining2 years unexpired maturity. The loan agreement was signed at Singapore by MM Haque, chief general manager, IDBI.