The Exim Bank today raised Rs 1,051 crore or 20 billion yen, through a 10-year Samurai bond programme, making it the export finance institution's second bond sale in the Japanese debt market.
The proceeds of the Samurai bonds will be used by the bank to fund Indian project exports to Sri Lanka for financing railway projects in Sri Lanka.
Samurai bonds are yen-denominated debt instruments issued by a foreign government or company in the Tokyo bond market.
This is the second Samurai bond issuance by the Exim Bank. It had earlier raised fund through the similar bonds in 2011, Exim Bank said in a statement.
"The final issue size was 20 billion yen and the bond was priced at 0.97 per cent (YSO+27 bps) for 10 years," it said.
The principal amount and part of the interest of privately-placed Samurai bonds would be guaranteed by Japan Bank for International Cooperation's (JBIC).
The guarantee was extended under the JBIC's guarantee and acquisition toward Tokyo market enhancement (GATE) facility.
Exim Bank achieved the tightest spread and the lowest coupon, the first sub-one per cent, in the history of the GATE facility. The previous record for the lowest coupon was held by the bonds issued by the Turkey government (1.05 per cent).
The lead arrangers to the issue were Daiwa Securities, Mitsubishi UFJ Morgan Stanley Securities, Mizuho Securities and SMBC Nikko Securities.
