Exim Bank looks to raise up to $1 billion in FY24 for commercial lending

The liquidity is comfortable in the international market, and the conditions are better for Indian entities than a few months ago in terms of raising resources, Bangari said

Export lender India Exim Bank is looking to raise up to $1 billion in this financial year (FY24) for commercial lending and country credit lines.

It follows the $1 billion raised by State Bank of India in January and HDFC Bank’s $750 million offerings earlier this month.

“The liquidity is comfortable in the international market and the conditions are better for Indian entities than a few months ago in terms of raising resources,” Harsha Bangari, managing director of India Exim Bank, told Business Standard.

The government-owned export credit institution has already raised $1.5 billion till December 2023 through various instruments. It includes $750 million raised in the third quarter of the current financial year using the External Commercial Borrowing route.

Bangari said the lender has the option to float bonds or enter into loan agreements, depending on market conditions. 

The outlook for interest rates was the outlook for softening of rates. The actual amounts raised would depend on the rate scenario with the intent to get low-cost funds.

During FY22-23, India Exim Bank raised Foreign Currency resources aggregating $3.47 billion through a variety of instruments.

In January 2023, the lender successfully issued a 10-year Sustainability Bond of $1 billion under its Environ­mental Social Governance Framework. It also raised funds through bilateral loans from banks and private placement of bonds.   

It mobilised a $100 million loan from the Japan Bank for International Cooperation, along with three Japanese private financial institutions, for supporting the Indian healthcare sector related to Covid-19, according to the annual report for FY23.