IDBI may hike fund raising thorugh MTN to 2.5 bn

He also said that the bank has raised around USD 124 million Rs 620 crore through a Swiss franc bond issue in March.

8220;We have raised around USD 124 million from the Swiss market with a maturity of 3.5 years and annual coupon size of 3.125 percent,8221; Rego said.

As per the officials,the bank has already raised USD 720 million out of USD 1.5 billion MTN size and plans to raise USD 750 million in the current financial year.

Referring to demand for offshore funds,Rego said there was a sound demand for foreign currency loans as of now,which is likely to increase in the future.

8220;There is sound appetite for foreign currency loans as of now and this is likely to increase in the near future. We also expect some demand from corporates as FCCBs foreign currency convertible bonds come for redemption in the later part of the year,8221; he said.

The bank also said that it would diversify its borrowing basket to reduce cost incurred in raising these funds.

8220;We are looking at other markets for raising money through MTN route as we would like to diversify our basket with reduction of cost,8221; Rego said,adding that the fund will be raised in small tranches from various markets.