MUMBAI, JANUARY 7, 2020 (GPN): The Export-Import Bank of India, on January 06, 2020, successfully priced a 10 year Bond of USD 1 bn, its third transaction in the 144A/Reg S format. The transaction marks lowest coupon from any Indian issuer for a 10 year USD issuance. The issue attracted a total order book in excess of USD 2.7 billion at close, thereby achieving more than 2.7 times subscription from 184 high-quality investors. The funds thus raised will be used by the Bank to support Indian project exports, overseas investment by way of long term credit and its lines of credit portfolio.

The transaction was priced at the fair value of CT10+150 bps, well inside the initial price guidance of CT10+175 bps area, representing significant price tightening of 25 bps and zero new issue premium. In terms of geographic distribution, the bonds were distributed 44% in Asia, 36% in USA and 20% from EMEA region. In terms of distribution, the bonds were distributed to high quality investors with around 58% distributed to fund managers, 18% to banks, 13% to insurance and pension funds, 10% to Central Banks/Official Institutions and 1% to private banks.

Barclays, Citigroup, HSBC, J.P. Morgan, MUFG and Standard Chartered acted as Joint Lead Managers and book runners for the offering. Exim Bank of India has been rated as ‘Baa2 (Negative)’ by Moody’s, ‘BBB- (Stable) by S&P and ‘BBB- (Stable)’ by Fitch, same as the rating of Government of India.

Speaking on the occasion, Mr. David Rasquinha, Managing Director of Exim Bank, said, “With a strong market opening trade from Exim Bank, many other Indian issuers are likely to follow suit to access the foreign currency bond market. The transaction is a remarkable achievement considering significantly weaker market backdrop owing to geopolitical tensions. The transaction also marks the lowest 10 year coupon from any Indian issuer in USD markets.

Ms. Harsha Bangari, Chief General Manager & Chief Financial Officer of Exim Bank said that this is a first single tranche US$ 1 bn issuance from India since last EXIM Bank issuance in 2018. The quasi sovereign nature of the Bank and EMBIG index eligibility of the bonds helped in the price tightening. The swift build to the book and the large book size, even after significant tightening by 25 bps demonstrates strong confidence of overseas investors in the India story and in Exim Bank.

Exim Bank aims to promote India’s international trade and investment. The Bank offers Indian companies a comprehensive range of products and services, supported by analysis and research, with a view to enhancing their international competitiveness. The Bank aggressively supports Indian exporting companies, especially medium-sized enterprises, in their globalisation efforts through a variety of lending programmes. ENDS