State-owned UCO Bank is waiting for an improvement in the country’s credit rating outlook before it hits the market with a $500 million foreign currency debt issue for fuelling its overseas business.

“We will raise not less than $500 million through Medium-Term Notes issue. But, we are waiting for the country rating to improve,” UCO Bank Executive Director S Chandrasekhran told PTI here.

The rating of not just the bank, but the country rating impacted the coupon rate and it could go for the issue in the later part of the year with the hope that rating outlook would improve, the bank official said.

In June, rating agencies Standard & Poor’s and Fitch had downgraded India’s credit outlook to negative, but Moody’s had retained the outlook at stable despite slowdown in the GDP.

UCO Bank registered robust growth in its foreign operations with revenue growing by 20 per cent to Rs 4,407.39 crore during April-June, 2012 over the corresponding period last year.

“We will strengthen the Singapore operations as there is lot of opportunity to grow,” UCO Bank Chairman and Managing Director Arun Kaul said.

Asked about the recapitalisation amount required from the government to meet Basel-III requirements, Kaul said at present the bank was carrying out an assessment for the same.

(This article was published on August 5, 2012)
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