EXIM Bank of India raises $1 billion bond through overseas bonds

EXIM bank raises $1 billion from overseas bond issuance, will use the fund to support the export projects of India financially. It is the biggest issuance ever for EXIM bank of India. Export Import or EXIM bank of India, made for export promotion has announced about raise of $1 billion (near 6700 crore) by selling bond to foreign investors. It is the largest bond issued so far by bank to raise funds.

The bond was issued initially for $500 million, but overwhelming response by investor upsized it to $1 billion.

EXIM bank raised 1 billion dollar bond in oversear market
EXIM bank raised 1 billion dollar bond in oversear market                           Image : Livemint

The issue of the bond attracted a total order book in excess of 250 crore dollar from over 157 investors. This figure is 2.5 times of the target.

It was the largest issuance ever for EXIM bank and also the largest single tranche issue overseas in 2016.

Where the raised fund will be used by EXIM Bank ?

EXIM bank of India will use this raised fund through bond  to support the India export projects.

The export will be supported financially so they can contribute more to increase the export of country.

How it will help India Capital Market ?

On this occasion , EXIM bank chairman and managing director Yaduvendra Mathur said that government bond issued by bank got good reponse in oversear market. After it, there may be good price discovery which in turn may help to boost Indian Capital Market.

The investor of this bond include 61 percent investors of America, 20 percent of Asia and 19 percent investor from Europe.

Bank of America Merrill Lynch, Barclays, Citigroup, JP Morgan and Standard Chartered Bank are the lead managers or to promote the bond.

The $1 billion bond got baa3 rating from rating agency moodies and S&P given BBB- rating.

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