NIIT, banks in pact to fund buyouts

NEW DELHI: Indian software and computer education firm NIIT Ltd. has tied up

with five banks, including foreign ones, to raise $100 million to part fund its

acquisitions in the overseas market, the Business Standard newspaper reported on

Monday.

The financial daily said the company was identifying software firms in the

United States and Europe for possible acquisitions.

"We have tied up with a couple of domestic as well as foreign banks for

the purpose. Due to the non-disclosure agreement, we cannot comment on the

coupon rate and maturity period of the credit," the paper quoted a company

spokesperson as saying.

It added that the firm had approached banks for funding because it did not

have an overseas float either in the form of American Depositary Receipts or

Global Depository Receipts which it could use as a currency for the buyouts.

The newspaper said NIIT would consider an overseas issue of its shares after

its acquisition strategy is finalized.

(C) Reuters Limited 2000.