IDBI unveils $1.5-billion medium term note programme

Mumbai: Industrial Development Bank of India Ltd (IDBI) has announced the establishment of a $1.5-billion medium term note programme, an official release issued by the bank to the BSE said. 

"With our new MTN programme in place, we will now be able to issue various debt instruments in the international capital markets, including senior notes, Upper Tier 2 notes and Hybrid Tier 1 notes, under a single documentation platform. This will allow us to quickly take advantage of market opportunities where they arise, increasing our fundraising efficiency," said Yogesh Agarwal, chairman and managing director of IDBI.

Barclays Capital and HSBC are acting as joint arrangers and dealers to the programme, h said.

IDBI bank, meanwhile, has registered a slowdown in advances growth from 17 per cent in the Q2 of previous year to 14.8 per cent in second quarter this year.

The bank has also cut interest rates by 75 basis points on 360-day deposits to 8.75 per cent from 9.50 pr cent. The rates on 500-day, 800-day, five-year and tax saving deposits have been reduced by 50 basis points to 9 per cent.

IDBI has also realigned interest rates for deposits of less than 360 days and more than two years to three years by 0.25 per cent to 0.50 per cent.