Exim Bank raises $500 million in overseas debt at 2.75% coupon

Export Import Bank of India (Exim Bank) on Friday said it has raised US $500 million by selling fixed rate unsecured bonds offering a coupon of 2.75% per annum from international markets in euro-dollar.

The 5.5-year bonds, to be listed on the Singapore Exchange, opened on February 4, and attracted subscription of around four times the issue size following strong demand from over 150 investors, the Government-run export finance agency said in a release.

"The euro-dollar issue was priced at 155 basis points over US treasury at a fixed coupon of 2.75% per annum," it said.

On Thursday, it was erroneously reported that the issue was offering a coupon of 2.87%. The pricing of the issue was tighter than the bank's similar bond issue in March 2014. The latest issue attracted more than US $2 billion of book size from over 150 accounts, the bank said, adding the allocation was made to 117 investors across the globe.

"The response reflects the high level of interest in Indian paper. We were able to pick the optimal execution window and are very satisfied with the outcome," Exim Bank Deputy Managing Director David Rasquinha said. The joint lead managers and book runners for the issue were Barclays, Citigroup and Standard Chartered Bank.