Exim Bank raises $500 million via bonds to fund long-term credit

Export-Import Bank of India (Exim Bank) has raised $500 million through issuance of bonds, which will be utilised towards long-term credit.

"The Export-Import Bank of India successfully launched a 5.5-year Reg S Bond issue of $500 million on January 13, 2016," it said in a release.

"The funds thus raised will be used by the bank to support Indian project exports and overseas investment by way of long-term credit."

The issue, Exim Bank said, attracted a total orderbook in excess of $1.25 billion, achieving oversubscription by 2.5 times of the issue size from over 110 investors.

"The size of the order book and the quality of the investor names showcase market's confidence in India as well as Exim Bank, particularly in a challenging market. We have worked assiduously to maintain communication bridges with overseas investors and sell the India story," said Exim Bank CMD Yaduvendra Mathur.

Exim Bank said over 47% of the issue was distributed to Asian investors, 46% European and Middle-East investors and the remainder primarily to offshore US investors.

It added that the Notes (bonds) were distributed to high- quality fixed income accounts such as asset management companies, public and private banks, pension funds, insurance companies and central banks as well as sovereign wealth funds.

The 5.5-year $500 million Eurodollar bond issue carries a fixed coupon of 3.12% per annum, it said.

Eurodollar bonds, denominated in the USD, are an important source of capital for multinationals and governments.