December 14: The bank has decided to assist those units which had earlier planned public issues to partially fund their projects but had to defer due to adverse market conditions. These projects are viable and have to be supported till they start generating adequate cash flows, senior IDBI sources maintained.IDBI's support comes mainly in the form of underwriting support, additional loans or guarantees. But recently, IDBI has stopped issuing guarantees to corporates opting for external commercial borrowings for repayment of rupee loans, Kapur disclosed.
Discussing the fund-raising programme of IDBI today, senior IDBI sources revealed that the borrowings in 1998-99 would be in the region of Rs 16,000 crore out of which public issues and private placements would account for bulk of the fund inflows.
The Flexibond series alone is expected to mobilise close to Rs 4000 crore. Till date, IDBI has mopped up Rs 5546 crore through the four series of Flexibonds with Flexibonds 4 accounting for Rs 1342.7 crore.Flexibond 5 has targeted a collection of Rs 1500 crore including oversubscription of Rs 750 crore.
The funds required by IDBI in 1998-99 for disbursement has been estimated at Rs 17,575 crore while another Rs 13,752 crore will be needed to meet debt servicing, dividend and tax payments. This is proposed to be financed out of internal generations of Rs 14,000 crore, borrowings (domestic and foreign) Rs 16,077 crore and drawal of cash amounting to Rs 1250 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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