EXIM Bank has successfully raised $1 billion (approximately ₹8,570 crore) through overseas bond issuance at highly competitive rates, marking a significant milestone for Indian issuers in global capital markets.
The funds will be used to support the bank’s ongoing and new initiatives worldwide, according to a statement issued on Tuesday.
EXIM Bank’s Managing Director, Harsha Bangari, highlighted that the bonds were issued at the “tightest spread ever achieved from India,” reflecting the bank’s strong credit profile and global investor confidence. The issuance was priced at US Treasury yields plus 1%, with a negative new issue concession of 0.05%.
The Department of Financial Services (DFS) lauded the transaction as a “fantastic start” to the year, showcasing the confidence of global investors in India’s economic growth story.
The bond issue witnessed significant interest globally, with 50% of investors from Asia, 32% from Europe, the Middle East, and Africa, and 18% from the United States. Asset and fund managers dominated the subscription pool, accounting for nearly two-thirds of the investors, followed by banks (18%), insurance and pension funds (16%), and other institutions.
Deepali Agrawal, Deputy Managing Director of EXIM Bank, stated that the quasi-sovereign nature of the bank, India’s inclusion in JP Morgan‘s emerging bond index, and the robust credit ratings contributed to the success of the issuance. The peak order book stood at $2.7 billion, enabling the bank to tighten the final pricing by 30 basis points from the initial guidance.
EXIM Bank is rated Baa3 (Stable) by Moody’s, BBB- (Positive) by S&P, and BBB- (Stable) by Fitch. These strong credit ratings, coupled with the bank’s strategic role in promoting India’s international trade, played a key role in attracting global investors.
This landmark transaction underscores India’s growing stature in global financial markets and EXIM Bank’s pivotal role in driving the country’s trade and economic development.
