Exim Bank raises USD 500 mn by issuing bonds; proceeds will be used to fund projects

The Export-Import Bank of India (Exim Bank) Wednesday said it has raised USD 500 million by issuing bonds, and the proceeds will be used to fund projects. The Exim Bank successfully launched a Reg-S 5-year bond issue of USD 500 million, it said in a release.

The funds raised will be used by the bank to support Indian project exports, foreign investment by way of long-term credit and its line of the credit portfolio, it said. Exim Bank said the bonds were distributed 87 per cent in Asia and 13 per cent in Europe and the offshore US.

HSBC Bank and Standard Chartered Bank acted as joint lead managers and book runners for the offering. In terms of distribution, the bonds were distributed to high-quality fixed-income accounts with around 44 per cent distributed to fund and asset managers, 29 per cent to banks and 20 per cent to insurance and sovereign wealth funds, 7 per cent to private banks, it said.

"The swift build to the book and the large book size...after significant tightening by 25 bps (basis points) demonstrates strong confidence of overseas investors in the India story and in Exim Bank. The deal offers seasoned and savvy investors strong credit quality in the steadily growing Indian economy," said David Rasquinha, managing director of the Exim Bank. Debasish Mallick, deputy managing director, Exim Bank, said: "The Bank has issued a fixed-rate Reg-S only bond after a gap of 3 years. The quasi-sovereign nature of the Bank and EMBIG index eligibility of the bonds helped in the tightening, while also re-pricing the curve for Indian papers." PTI KPM KPM HRS

(With inputs from agencies.)