 "U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul")
The government-owned export credit agency Export-Import Bank of India (EXIM Bank) has raised $1 billion through a 10-year bond. The proceeds will be used to finance Indian project exports and overseas investments.
Initially issue size was pegged at for $500 million. But was upsized to $1 billion based on strong demand from the investors.
The issue attracted a total order book in excess of $2.50 billion, achieving 2.5x over subscription from over 157 investors, EXIM Bank said in a statement.
Having initially marketed the deal at 210 basis points over US Treasuries, the Bank was able to achieve a final pricing of 187.5 basis points over US Treasuries. The coupon on bond was 3.375%.
David Rasquinha, deputy managing director, said the bond was very well received by investors despite tightening 22.5 bps from initial guidance.
The initial guidance was 210 bps over yield on US treasuries. After strong response, the yield guidance was brought down to 187.5 bps over US treasuries.
This was the largest issuance ever for Export-Import Bank of India and also the largest single tranche issuance out of India in 2016.
