2:45 am - Saturday November 7, 2015

Syndicate Bank plans to raise $350 m via MTN for UK branch

155 Viewed Gautam Comments Off on Syndicate Bank plans to raise $350 m via MTN for UK branch
bank1

Public sector lender Syndicate Bank plans to raise $350 million through medium-term notes (MTN) during the current quarter to meet lending requirements of its London branch.

The board of directors of the bank approved the fundraising plan, which is expected to be concluded by this month end.

“We will raise $350 million in the next few weeks through the MTN route to fund our London branch operations. We will appoint advisors and lead managers next week and launch roadshows during the second half of the month,” said M Anjaneya Prasad, executive director, Syndicate Bank.

A medium-term note is a debt security that usually matures in 5-10 years. Through MTN issue, the bank will be able to raise relatively cheaper funds, said Prasad.

The bank’s London branch business grew 33% last fiscal to touch R57,884 crore, up from R43,442 crore in the previous fiscal. Advances increased 29% from R25,140 crore to R32,506 crore. Deposits at the London branch increased 39% from R18,301 crore to R25,378 crore.

The bank is now looking at opening branches in South Africa, Dubai International Financial Centre, Hong Kong, Thailand and China. “We have already completed our survey in Dubai and will approach the RBI for approval next quarter. We hope to have our second overseas branch in 2015-16,” he said.

In the domestic market, the board approved raising capital of R2,650 crore by a rights issue, qualified institutional placement (QIP) and follow-on public offer. The bank’s had fresh slippages of R1,197 crore in Q4 and Prasad said he expected them to reduce to around R400-500 crore from Q1FY15 onwards.

Syndicate Bank’s Q4FY14 net profit fell to R409.3 crore from R592.3 crore in the same quarter a year ago. Gross non-performing assets stood at 2.62% against 2.80% (q-o-q). Net NPAs stood at 1.56%.

 

Click here to submit your review.


Submit your review
* Required Field

Don't miss the stories followIndiaVision News and Information and let's be smart!
Loading...
0/5 - 0
You need login to vote.
Filed in
Sensex surges 233 points during pre-noon session

Sensex Hits Record High of 23,048 Ahead of Exit Polls

Sensex gains 388 points as crude price drops

Stock markets hits record high in India

Related posts