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Good response to SBI fund drive in Gulf

Vimala Vasan

ABU DHABI, Sept. 2

BANKS in West Asian and South East Asian markets have responded favourably to State Bank of India's schemes to raise funds overseas for premier Indian institutions and the bank is currently receiving positive feedback for its roadshows to promote its new assignment to raise the equivalent of $100 million in Japanese yen for the Housing Development and Finance Corporation of India, according to a senior bank official.

Mr N. Chandrashekar, Chief General Manager, International Banking, who is in Dubai for a road show in connection with the syndicated loan facility to HDFC, told Business Line that strong participation is expected from banks in the region.

``We have already held two roadshows in Singapore and Hong Kong, and they were very well attended. Japanese banks are also evincing a lot of interest,'' he said.

SBI has been mandated by HDFC to raise the amount in Japanese yen. The loan facility to HDFC has a bullet maturity of five years. The first road show was held in Singapore on August 27 and September 15 is the last date for participation by banks.

It is underwritten by two other banks, BBS Singapore and RZB of Austria, the bank official said.

Mr Chandrashekar said the move to tap the West Asian market follows the strong interest in the new loan facility in view of the credentials of HDFC and SBI. ``We have been handling quite a few prestigious assignments for public sector companies in the la st few years with good success,'' he indicated.

The official said the West Asian market was being regularly tapped after the excellent response to an earlier roadshow held in Bahrain in 1999-2000 for the NTPC. ``We were raising the equivalent of $80 million and it was oversubscribed. We also came to D ubai last month to promote the $120 million re-finance scheme for NTPC and met with positive feedback,'' he added.