Export Import Bank of India has entered the private placement market to raise resources for 10 years at 13.5 per cent, payable annually. It plans to raise Rs 200 crore with a green shoe option of an additional Rs 200 crore.
The instrument offers a put and call option at the end of five and seven years. It is rated AAA by Crisil and Icra. It offers 0.9 per cent discount to face value with exit (put) option to investors at the end of the fifth and the seventh year.
The yield to maturity on the bonds works out to 13.76 per cent payable annually.
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This is the second bond issued on private placement basis while the first was in January 1996 for Rs 200 crore.
According to an Exim Bank statement, the bond is targeted at investment institutions, mutual funds, financial institutions, banks, corporates, provident, superannuation and gratuity funds. These bonds are approved securities under the Indian Trust Act 1882.
The issue opened yesterday for subscription and is scheduled to close on December 21. Exim bank has stated that the funds raised by them through this bond issue will be used to expand operations.
"The bank's current vision is to help externally oriented companies globalise their business by offering them a comprehensive range of financing and services aimed at promoting exports, two way investment flows, technology and quality upgradation," the statement said.
The bank's total lending under various programmes during 1997-98 amounted to Rs 1,370 crore, up 9 per cent over the previous year. The loan outstanding as on March 31, 1998 was at Rs 3,917 crore, a 13.5 per cent rise. The net worth of the bank increased 15.4 per cent from Rs 1,045 crore in 1996-97 to Rs 1,206 crore in 1997-98 while profits rose 35 per cent to Rs 201.7 crore.