IDBI on Friday announced that it was planning to raise US$ 1.5 billion through currency bonds in euro in tranches for the bank's future expansion and acquisition purposes.
     It would be a medium-term programme and the money would be raised in different tranches, including perpetual Tier I and Tier II capital.
“The fund so raised will be utilised for regular requirement of foreign currency funds for domestic operations, future expansion or acquisition proposes,” IDBI Chairman V P Shetty said in a communique to the shareholders. The funds would also used for carrying out operations of overseas branches proposed to be opened during FY'08.
RBI has already given its nod to IDBI to raise funds by issuing bonds on reimbursement basis to meet financing requirements of long-gestation projects other than those in the infrastructure sector.