IDBI bank, earlier this month announced its plan for raising a syndicated loan of USD 225 million in overseas market this fiscal. Further declaration by IDBI revealed Asian Development Bank (ADB) to act as a partial guarantor for the raise. The bank had also declared that it would be using the loan in order to lend it micro, small and medium enterprises.
Commenting on the same, IDBI Bank Chairman and Managing Director R M Malla said, "We are planning to raise USD 225 million from various banks overseas. For this we are in talks with Asian Development Bank that will act as a partial guarantor, and with this, our cost of borrowing will come down. We will use the funds for lending to SMEs".
Malla, while making the intentions of the bank further clear said that the bank would proceed looking for market such as in Singapore and China, after its has covered the Dubai market. It further cleared that though the Reserve bank of India (RBI) had already given approval to expand the market in these two countries, the bank has not finalized anything in practical.