Export-Import Bank of India is marketing a debut five-year Green bond to yield around 165bp over US Treasuries.

The issuer is targeting a size of at least $250m for the Reg S bond to qualify for inclusion in the Bank of America Merrill Lynch Green Bond Index.

The index, announced on October 30 last year, tracks the performances of the debts of quasi-governments and corporations, which use the proceeds solely for projects and activities promoting climate or other environmental sustainability purposes.

Bank of America Merrill Lynch and JP Morgan are joint book-runners on the first US dollar Green bond out of India.

Conference calls took place last week with global investors, including pension funds, asset managers and corporations focused on putting money in socially responsible projects.

Exim India's Green bonds are expected to be rated Baa3/BBB- (Moody's/S&P).

The announcement came after Yes Bank priced India's first Green bond last month. The lender raised Rs 1000 crore ($161m) from the sale of 10-year Green bonds at an annual coupon of 8.85 per cent.

The proceeds will be used to fund eligible green projects in countries such as Bangladesh and Sri Lanka.

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