Flagging the first dollar bond issuance by an Indian entity in 2025, Exim Bank has announced that it has raised $1 billion by successfully issuing 10-year senior secured dollar bonds. Moreover, the spread over 10-year US Treasuries was the “tightest-ever” – 100 basis points, the bank said. “This transaction also marks the tightest spread ever achieved for a 10-year public issuance out of India and the tightest ‘BBB-’ 10-year USD public issuance out of Asia ex-Japan,” Exim Bank said in a statement.
Institutions such as Citigroup, HSBC, J.P. Morgan, BofA Securities and Standard Chartered Bank were appointed as lead managers and bookrunners for the first dollar bond issuance by Exim Bank. The geographic spread of the bonds was significantly well diversified – about 50% was done in Asia, 18% in the US and the rest 32% was placed with institutions in Europe, West Asia and Africa.
Distribution by investor type
The distribution by investor type was done in the following manner – about 64% was picked up by asset/fund managers, about 18% was subscribed by banks. About 16% went to pension funds, insurance firms, public sector entities etc.
The successful issuance of the debt paper reflected confidence of the investors in the quality of debt. It also helped Exim Bank to achieve a pricing of UST10+100 basis points. The bank took advantage of the robust demand and tightened the coupon rate. According to reports, Exim bank has a semi-sovereign character. It also has a strong credit profile. The bonds also enjoyed EMBIG index eligibility. All these provided the tailwind for the bond to quickly attract the attention of high-quality investors.
Exim Bank offers financial assistance to exporters and importers, It also operates as a key institution for coordinating the operation of entities operating in the domain of financing export and import of goods and services. “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,” deputy managing director of Exim Bank, Deepali Agrawal, told the media.
Marking the first dollar bond issuance by an Indian entity in 2025, Exim Bank has announced that it has raised $1 billion via 10-year senior secured dollar bonds. According to reports, the debt was raised at a very tight spread of 100 basis points over 10-year US Treasuries. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
