SIDBI to raise Rs 2,500 crore via debts
By Our Banking Bureau | 04 May 2002
"We are expecting to
raise a total Rs 2,500 crore through these domestic and foreign
debts this fiscal," says SIDBI chairman P B Nimbalkar. "SIDBI
has been allowed in the Budget to issue capital gains bonds under
section 54 EC of the Income Tax Act. We are planning to raise Rs
1,000 crore through bonds issue this fiscal."
The capital gains bond, which will be floated on an on-tap basis from June-July 2002 onwards, is expected to have a maturity period of minimum three-to-five years, he says. "The interest rate on these bonds will depend on market conditions." SIDBI is also planning to mop up Rs 900-1,000 crore this fiscal through its priority-sector bond issue, which received overwhelming response mopping up about Rs 1,200 crore last fiscal against a target of Rs 1,000 crore, says Nimbalkar. He says the bank is negotiating with German Development Bank for a 30-million deutsche mark (about Rs 65 crore) line-of-credit for providing loans to companies eager to adopt a clean technology.
