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UTI
Bank, Sahara group, ICICI Bank fully subscribe IDBI issue
Nisha Das
29 July 2003
 Mumbai:
IDBI's
Rs 500-crore private placement issue has been subscribed
fully by UTI Bank, the Sahara group and ICICI Bank. The
issue was structured by UTI Bank through a senior bond
issue. The interest rate of the issue was 8 per cent payable
over a period of 15 years.
 Source
close to the deal say out of the total Rs 500-crore issue,
UTI Bank has subscribed Rs 200 crore while the Sahara
group subscribed to another Rs 200 crore. The remaining
Rs 100 crore has been subscribed by ICICI Bank. UTI Bank
was the sole advisor to the deal.
 IDBI
has plans to mobilise Rs 5,000 crore through the private
placement route over five years. IDBI wants to utilise
these funds for its normal capital expenditure. The financial
institution expects to raise up to Rs 2,500 crore through
the private placement of omni-bonds and another Rs 2,500
crore through the flexi-bonds issues.
Senior
UTI officials say the bank has also subscribed to the
Rs 100-crore private placement of automaker Mahindra and
Mahindra and Rs 120-crore private placement of PowerGrid
Corporation of India during July. M&M would also use
the funds for its capital expenditure programme for the
current fiscal.
 PowerGrid
wants to borrow about Rs 1,500-1,600 crore from the domestic
market in the current financial year to part-finance its
planned investment of Rs 3,250 crore, after which it expects
a turnover of Rs 3,000 crore and a net profit of Rs 900
crore. In 2001-02, PowerGrid raised Rs 550 crore of long-term
loans and Rs 1,695 crore of bonds in the domestic market.
 According
to the UTI Bank officials, the bank is also in talks with
Gas Authority of India and Nuclear Power Corporation for
their proposed Rs 500-crore private placements, both scheduled
for the current fiscal.
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