SIDBI to raise further Rs. 300 crores through private placement

NEW DELHI, MARCH 20. The Small Industries Development Bank of India (SIDBI) is planning to raise Rs. 300 crores through domestic private placement in the current fiscal, as part of its efforts to mop up additional funds to meet its lending requirements.

"We are planning to raise Rs. 300 crores from the domestic market through private placements before end of March which is in addition to Rs. 300 crores raised by SIDBI in January," Mr. Sailendra Narain, Managing Director of SIDBI told PTI.

Mr. Narain said the bank was also awaiting clearance for a Rs. 1,300 crore loan from multilateral lending agency the Overseas Economic Cooperation Fund (OECF) of Japan, which was scheduled to be released this year.``This would be the seventh line of credit for SIDBI from OECF in case the loan is cleared," he added.

SIDBI, which provides credit to various small and medium industries, is also planning to launch its two venture capital funds this year, he said, adding one of the venture capital funds would target the non-resident Indian it entrepreneurs in silicon valley.

The bank would also launch a $50 million venture capital fund by may to finance projects undertaken by Indian it entrepreneurs/companies in the silicon valley, he said.The fund, to be registered in the U.S., would help finance the Indian IT entrepreneurs who have viable projects and SIDBI was also not averse to the idea of entering into a partnership with international venture capitalists for the fund, Mr. Narain said.

"SIDBI would consider forming partnerships with global venture capital firms who have a strong presence in the U.S.

- PTI

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