Money & Banking

Exim Bank raises $1 bn from overseas bonds

Our Bureau Mumbai | Updated on January 18, 2018 Published on July 31, 2016

Export-Import Bank of India (Exim Bank) on Sunday said it has raised $1 billion via a 10-year bond issue at a coupon rate of 3.375 per cent.

The funds raised will be used by the Bank to support Indian project exports, overseas investments by way of long-term credit and its lines of credit portfolio.

The Bank, in a statement, said its bond issue attracted a total order book in excess of $2.50 billion, thereby achieving 2.5 times oversubscription of the issue size from over 157 investors. Initially announced for $500 million, the issue was upsized to $1 bn based on strong demand from the investors.

Yaduvendra Mathur, Chairman and Managing Director, said, “The Bank is the closest proxy to sovereign in the international markets and the 10-year issuance was based on investors’ feedback, so that benchmark 10-year curve out of India could be established. The issuance will help in better price discovery for other issuers from India seeking longer tenor funds from the international debt capital market.''

David Rasquinha, Deputy Managing Director, observed that this is the first time the Bank has tapped the deep and wide 144A market and the bond was very well received by investors with a book that was over two times oversubscribed.

In terms of geographic distribution, the bonds were distributed 61 per cent in USA, 20 per cent in Asia and 19 per cent in Europe

US institutional investor allocation of 61 per cent was the highest-ever for any bank/FI out of India, Exim Bank said.

Exim Bank, which is a government-owned export finance institution, had commenced operations in 1982 under the Export-Import Bank of India Act 1981. Government of India launched the institution with a mandate to not just enhance exports from India, but also to integrate the country’s foreign trade and investment with the overall economic growth.

Published on July 31, 2016
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