 "EXIM Bank to issue 'Panda Bonds' worth $300 million")
Export-Import (EXIM) Bank of India plans to raise $300 million from Chinese financial markets through panda bonds to finance demand for credit.
Panda bonds are renminbi-denominated instruments from a non-Chinese issuer, sold in the People’s Republic of China.
David Rasquinha, deputy managing director of EXIM Bank, said the currency swap rates to raise money from the Chinese market are attractive. Timing for bond offering would depend on favourable swap rates.
EXIM was looking at a big issue to finance some of the major infrastructure projects that were now coming up, Mathur told reporters on the sidelines of a seminar. So far this financial year, EXIM Bank had raised $500 million through green bonds and another $500 million through a dollar-denominated bond.
Referring to capital infusion by the government, Mathur said the bank had sought Rs 1,700 crore from the government for 2016-17. “In the last two financial years (FY15 and FY16), our equity has been growing by Rs 1,300 crore each, which means we could lend Rs 13,000 crore every year.”
Under the EXIM Bank Act, which was amended in 2011, the authorised capital of the bank should be Rs 10,000 crore or what the government decides.
“Our equity right now is Rs 5,300 crore. We are telling the government to bring us to Rs 10,000 crore paid-up capital at the earliest. We have requested that this should be bridged in the next three years,” he said.
The bank’s capital adequacy ratio stands at 15 per cent as against the regulatory requirement of nine per cent, which provides more opportunity to grow portfolio.
Panda bonds are renminbi-denominated instruments from a non-Chinese issuer, sold in the People’s Republic of China.
David Rasquinha, deputy managing director of EXIM Bank, said the currency swap rates to raise money from the Chinese market are attractive. Timing for bond offering would depend on favourable swap rates.
Also Read
Yaudevendra Mathur, EXIM Bank chairman and managing director, said the bank was planning to raise over $1 billion through the bond market in the next few months.
EXIM was looking at a big issue to finance some of the major infrastructure projects that were now coming up, Mathur told reporters on the sidelines of a seminar. So far this financial year, EXIM Bank had raised $500 million through green bonds and another $500 million through a dollar-denominated bond.
Referring to capital infusion by the government, Mathur said the bank had sought Rs 1,700 crore from the government for 2016-17. “In the last two financial years (FY15 and FY16), our equity has been growing by Rs 1,300 crore each, which means we could lend Rs 13,000 crore every year.”
Under the EXIM Bank Act, which was amended in 2011, the authorised capital of the bank should be Rs 10,000 crore or what the government decides.
“Our equity right now is Rs 5,300 crore. We are telling the government to bring us to Rs 10,000 crore paid-up capital at the earliest. We have requested that this should be bridged in the next three years,” he said.
The bank’s capital adequacy ratio stands at 15 per cent as against the regulatory requirement of nine per cent, which provides more opportunity to grow portfolio.