EXIM Bank raises $10 bn through bonds on LSE

The Dollar Business Bureau

The Export Import Bank of India (EXIM Bank), the premier export finance institution in the country, has raised $10 billion via issuance of 10-year dollar bonds on London Stock Exchange (LSE). The bonds were oversubscribed by almost two times.

The EXIM Bank will use the proceeds from bonds for supporting Indian project exports, foreign investments through long-term credit and its portfolio of lines of credit.

“The notes achieved the tightest ever spread over US Treasury for an Indian entity for a 10-year issuance,” said LSE in a statement.

The 10-year bond has an annual yield of 3.897% and protected high investor support from all over the world, it said.

EXIM Bank Managing Director David Rasquinha said that the Bank is a consistent issuer in the overseas debt capital market and it has a major share of dollarised loan in its book.

“This was our second foray to the 144A market as part of our constant endeavour to further strengthen and foster long-term relationships with global investors,” he said.

Rasquinha further said that a finely executed and well-designed marketing strategy of the institution has helped it to attain the tightest-ever US’ 10-year treasury notes by an Indian issuer whereas at the same time attracting topmost quality investors in its order books.

“Through this issuance the EXIM has yet again created a liquid benchmark 10-year curve out of India,” he added.

Nikhil Rathi, CEO, LSE, welcomed the inaugural bond of EXIM Bank on the International Securities Market of the exchange.

“Through LSE’s International Securities Market, issuers get benefitted from our efficient process of listing and to have access to the largest pool of globally oriented capital in the world,” Rathi said.

“EXIM Bank is global pioneer in export finance supporting India’s global growth and trade agenda. The successful pricing reinforces LSE’s position as the key destination for Indian and global capital raising,” he added.