UTI Bank to raise up to $1billion to fund expansion

Mumbai: UTI Bank is considering issuing medium term notes to raise up to $1 billion to fund its global operations, according to Dr P J Nayak, chairman and managing director.

He said that the bank would open its Singapore branch by February, after which it will start the medium term notes (MTN) programme. "As we are opening a branch in Singapore we require funds and MTNs is an attractive option," he said. The notes could be raised in tranches, he added.

Dr Nayak disclosed That the bank was in the process of getting ratings from Standard & Poor's and Moody's..
He also said that though the amount was not finalised, initial estimates indicated the bank may need to raise up to $1 billion.

The bank also plans to expand in other Asian countries, Dr Nayak said. It already has tie-ups with the Doha Bank in Qatar and the UAE Exchange Company for its remittance business.