IDBI Bank to raise $1 bn via bonds

New Delhi: State-owned IDBI Bank today said it would raise around USD 1 billion (about Rs 5,000 crore) over the next 12 months through bonds from overseas.

"We plan to raise USD 1 billion overseas in tranches over one year," IDBI Bank Chairman and Managing Director R M Malla said.

The raising of funds would be done under Medium-Term Note (MTN) programme and they will be utilised to expand overseas operations through its Dubai branch.

The bank board had given approval for USD 1.5 billion MTN programme.

Last year, the bank raised USD 350 million via bond with a maturity of 5.5 years.

Besides, Malla said, the bank plans to opens about 250 branches in the country over the next one year. It is also looking at ramping up its international presence.

The bank submitted applications to the Monetary Authority of Singapore for setting up an Offshore Banking Unit there and to the China Banking Regulatory Commission for setting up a representative office at Shanghai, he said.

IDBI Bank hopes to get licence from the Singaporean authorities within the next few months, Malla said.

Currently, the bank has one overseas office. It operates from Dubai (UAE). Domestically, the branch network of the Mumbai-based stood at 930 branches as of September.

The bank opened 107 branches in 2010-11, including specialised corporate branches, taking the total to 815 as on March 31, in addition to an overseas branch at DIFC, Dubai.

Source: Financial Express