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Export-Import Bank of India (India Exim Bank) has raised $1 billion via a 10-year Sustainability Bond issue in the 144A/Reg-S format under its Environmental Social Governance (ESG) Framework.
This issuance at a coupon rate of CT10 (US 10-year Treasury Bond) +190 basis points makes India Exim Bank the first Indian issuer to open the markets for dollar and sustainability bond issuances in 2023, the development finance institution said in a statement.
Harsha Bangari, Managing Director, said, “This issuance makes India Exim Bank the largest ever single tranche IG ESG issuer out of India. This $ 1 bn issuance is testimony to our commitment towards sustainable financing both in India and partner developing countries, and to align ourselves with the global best practices.”
Tarun Sharma, Chief Financial Officer, observed that the quasi-sovereign nature of the Bank, EMBIG index eligibility of the bonds, and the commitment towards sustainable financing garnered significant interest from marquee investors, with a peak orderbook of 3.7x.
Given the swift build to the book and the large book size, the Bank elected to move quickly to achieve a significant price tightening by 30 bps from the initial guidance, he added.
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