State-run, IDBI Bank has awarded the mandate to three leading foreign lenders to raise $ 225 million five-year syndicated loan in Asian and European markets by mid-December, a top bank official said.

The bank has mandated leading lenders, Deutsche Bank, Royal Bank of Scotland and ANZ as the lead arrangers for the programme and will pay an interest of 2.25 per cent above Libor, IDBI Bank’s Executive Director and Head of International banking, Melwyn Rego told PTI here.

“This is a fully underwritten syndicated loan. We expect to receive the money by middle of next month (December) and the proceeds will be used to fund the ongoing business operations of the bank,” Mr. Rego said.

This would be the second syndicated loan programme of IDBI Bank in a period of less than two months. The lender had raised $ 250 million from the syndicated loan market overseas in October, which had a maturity of one year.

“We were the first among Indian banks to tap the syndicated loan market after the collapse of Lehman Brothers.

This loan ($ 225 million) will again be a trend-setter in the Indian market,” Mr. Rego said.

The bank would go for further fund raising once its proposed branch at the Dubai International Financial Center (DIFC) becomes operational, Mr. Rego said.

“We will be raising funds early next year, once the DIFC branch becomes operational,” Mr. Rego said.

The DIFC branch will focus on wholesale and corporate banking business and will assist Indian companies operating abroad to raise funds to fund their business, Mr. Rego said.

Country’s largest lender, State Bank of India, had raised $ 750 million through bonds from the overseas market last month.

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