EXIM Bank Overseas Bond Issuance
EXIM Bank has successfully raised $1 billion (approximately Rs 8,570 crore) through an overseas bond issuance. This issuance was done at very competitive rates to fund its global initiatives.
Key Highlights
- Competitive Pricing: Achieved at "the tightest spread ever achieved from India," with a final pricing of US treasury plus 1% and a negative new issue concession of 0.05%.
- Investor Distribution:
- 50% from Asia
- Approximately 33% from Europe, the Middle East, and Africa
- 18% from the US
- Investor Types:
- Nearly two-thirds are asset and fund managers
- 18% are banks
- 16% are insurance, pension funds, and public sector entities
- Private banks and others follow
- Order Book: Peaked at $2.7 billion, supported by the bank's quasi-sovereign status, strong credit profile, and India's inclusion in the JP Morgan emerging bond index.
Credit Ratings
- Moody's: Baa3 (Stable)
- S&P: BBB- (Positive)
- Fitch: BBB- (Stable)
Significance and Impact
The Department of Financial Services (DFS) praised this as a "fantastic start" to the year for Indian issuers in global capital markets. The transaction reflects the confidence of overseas investors in the India story.
EXIM Bank's Role
EXIM Bank provides financial assistance to exporters and importers, serving as a principal financial institution for coordinating financing of export and import activities to promote India's international trade.
