Fund Raising

Lead managers for the governments dollar raising exercise plan to tap the American and Europe markets in about ten days time.
Deutsche Bank and UBS Warburg on Tuesday, won the mandate to raise US$ 100 mn through a five-year floating rate note.rn

rnThe investment banks have the option of raising a further US$ 100 mn if the interest rate is favourable to the government. The joint lead managers have been set a November 30 deadline to come up with the funds.rn

rnOn Monday, Solomon Smith Barney, the investment-banking arm of the Citigroup was also mandated to raise US$ 150 mn through a five-year syndicated loan. rn

rnThe syndication comes with a 90 percent guarantee from the Japanese government owned Nippon Export Insurance Company (NEXI). The funds will be raised exclusively from foreign banks in Japan and the NEXI backing enables participants to limit their exposure to 10 percent.rn

rnThe Citibanks proposal is said to be competitively priced at around 200 basis points above the six months London interbank offered rate.rn

rnThe dollar raising exercise forms part of the governments long-term borrowing programme for 2002. Some of these dollar funds would be go towards partially retiring existing debts and also fund key infrastructure projectsrn