IDBI is "looking positively at prospects" following the Indian government's decision to permit cross border project financing within one year, Gupta said at a seminar on Regional Capital Markets and Electronic Exchanges organised here yesterday by the Indian business council.

IDBI has a proven track record in project financing and has cleared $ 5 billion worth of projects of which $ 3 billion were loans disbursed by it, Gupta said. These are mainly for projects in power, refineries, ports, telecommunications, steel and textiles sector.

IDBI could also extend loans to UAE in the fields of pharma and agribusiness, said Gupta, who was here along with the managing director of the National Security Exchange (NSE) R H Patel to participate at the seminar. "We are open to the idea ofinvestment but we will first have to conduct a study before making any commitments," he added.

He said IDBI was coming out with a Flexibonds issue towards July end aimed at raising $ 1.2 billion to $ 1.5 billion. Five to 10 per cent of the issue will be raised from the Gulf and the IDBI will allow repatriation of investments made by NRIs in these bonds, he said.