Exim Bank,Export-Import Bank of India,has introduced hiking of $1 billion by advertising bonds to abroad investors.
According to the statement released by Exim Bank, “Primarily introduced for $500 million (nearly Rs 3,350 crore), the issue was upsized to $1 billion based on strong demand from the investors.The issue attracted a total order book in excess of $2.50 billion from over 157 investors. This was the largest issuance ever for Exim Bank and also the largest single tranche issuance out of India in 2016”
Yaduvendra Mathur,who is the Exim Bank Chairman and Managing Director said,"The bank is the closest proxy to sovereign in the international markets and the 10 year issuance was based on investors' feedback, so that benchmark 10 year curve out of India could be established,"
He said, “The funds thus hiked will be used by the bank to support Indian project exports, overseas investment by way of long term credit and its lines of credit portfolio”
He further added, “Having at first marketed the deal at 210 base points over US Treasuries, the bank was able to achieve a final pricing of 187.5 basis points over US Treasuries, to yield 3.383% on a coupon of 3.375% resulting in negative new issue top beside a very burly market setting”
Exim Bank aims to endorse India's global trade and asset.
The bank ropes Indian exporting companies, particularly medium-sized enterprises, in their globalization efforts during a diversity of lending programmes.
