IDBI Bank on Friday said that the board of directors has approved the proposal of foreign currency borrowing limit up to a principal outstanding amount of $7.5 billion equivalent.
The bank said in a Bombay Stock Exchange filing that this would be including the borrowing under IDBI Bank’s $5 billion medium-term note programme listed with the Singapore stock exchange. The board meeting was held on Friday.
The funds could be raised in one or more tranches according to the bank.
The , the bank indicated that fund-raising could be done via different routes that include bi-lateral loans, club loans, syndicated loans, lines of credit, or via tier-II bonds or additional tier-I bonds among others.
In the recently concluded annual general meeting, IDBI Bank had received shareholder approval to raise R26,000 crore through a mix of equity and debt.
The government has decided to infuse capital funds to the tune of R2,229 crore in IDBI Bank by way of preferential allotment of equity in favour of the government of India.