EXIM Bank Raises USD 1 Billion Through Overseas Bond Issuance for Global Initiatives

EXIM Bank has successfully raised USD 1 billion, approximately Rs 8,570 crore, through an overseas bond issuance at competitive rates. The funds will support both ongoing and new global initiatives. Harsha Bangari, the managing director, highlighted that this was achieved with the tightest spread ever from India. The bank capitalised on strong demand, securing a final pricing of US Treasury plus 1 per cent with a negative new issue concession of 0.05 per cent.

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The Department of Financial Services praised this as a promising start for Indian issuers in global capital markets. EXIM Bank's statement revealed that half of the investors were from Asia, nearly a third from Europe, the Middle East, and Africa, and 18 per cent from the US. Asset and fund managers made up nearly two-thirds of subscribers, while banks accounted for 18 per cent, and insurance, pension funds, and public sector entities comprised 16 per cent.

Investor Confidence and Market Dynamics

Deepali Agrawal, the deputy managing director, noted that the issue saw a peak order book of USD 2.7 billion. This was due to the bank's quasi-sovereign status, strong credit profile, and India's inclusion in JP Morgan's emerging bond index. "Given the quality book-build and the large book size, we elected to move quickly to achieve a significant price tightening by 30 basis points from the initial price guidance," she added.

EXIM Bank holds ratings of Baa3 Stable by Moody's, BBB- Positive by S&P, and BBB- Stable by Fitch. The Department of Financial Services stated that this transaction reflects overseas investors' confidence in India's economic narrative. EXIM Bank plays a crucial role in providing financial assistance to exporters and importers. It serves as the main financial institution coordinating efforts to finance international trade.

The bank's strategic move in the global capital markets underscores its robust position and investor trust. By leveraging favourable market conditions, EXIM Bank has set a benchmark for future issuances from India. This initiative not only supports its global projects but also strengthens India's presence in international financial markets.