 "Exim Bank India raises $1 billion from overseas via 10-year bonds")
EXIM Bank on Tuesday said it has raised $ 1 billion (about Rs 8,570 crore) through an overseas bond issuance at very competitive rates.
The policy bank will be using the money to fund its ongoing and new initiatives across the world, according to a statement.
Its managing director Harsha Bangari said the money has been raised at "the tightest spread ever achieved from India".
The bank capitalised on a strong demand momentum to achieve a final pricing of US treasury plus 1 per cent with a negative new issue concession of 0.05 per cent, the statement said.
The Department of Financial Services termed it as a "fantastic start" to the year by Indian issuers in global capital markets with EXIM raising the money in the $ denominated public bond issuance.
The statement from EXIM Bank said half of the investors were from Asia, nearly a third from Europe, the Middle East and Africa and 18 per cent were from the US.
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Nearly two-thirds of the subscribers are asset and fund managers, 18 per cent are banks, and 16 per cent are insurance, pension funds and public sector, followed by private banks and others, it added.
The lender's deputy managing director Deepali Agrawal said the issue witnessed a peak order book of $ 2.7 billion courtesy the quasi-sovereign nature of the bank, strong credit profile and India's inclusion in JP Morgan emerging bond index.
"Given the quality book-build and the large book size, we elected to move quickly to achieve a significant price tightening by 30 basis points from the initial price guidance," she added.
India Exim Bank has been rated as Baa3 (Stable) by Moody's, BBB- (Positive) by S&P and BBB- (Stable) by Fitch.
The DFS said the transaction demonstrates the confidence of overseas investors in the India story.
Exim Bank provides financial assistance to exporters and importers, and functions as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country's international trade.