IDBI Bank plans to raise $ 1 billion from abroad over the next twelve months, its Chairman and Managing Director, Mr R.M.Malla has said.
This overseas borrowing would be in tranches and likely to be done under a medium term note (MTN) program, Mr Malla told Business Line here. MTN is a note that usually matures in 5 to 10 years. Such a debt programme allows a company to have constant cash flows coming in from its debt issuance.
IDBI Bank’s board has already given its nod for fund raising of $ 1.5 billion through the MTN route. Last year, IDBI Bank had mopped up $ 350 million through bonds with a 5.5 years maturity.