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

Export Import Bank of India (Exim Bank) has raised $500 million by selling fixed rate unsecured bonds offering a coupon of 2.75 per cent per annum from international markets.

The 5-1/2-year Eurodollar bonds, opened on 4 February, attracted subscription of nearly four times the issue size, with strong demand from over 150 investors, Exim Bank said in a release.

The issue attracted more than $2 billion from over 150 accounts, the bank said, adding the allocation was made to 117 investors across the globe.

The bond has been issued at the tightest spread compared to the US treasury bills amongst all Indian dollar bond transactions since the financial crisis and achieved the lowest ever coupon by an Indian financial institution, according to Exim Bank.

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

"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 bonds are to be listed on the Singapore Exchange, Exim Bank, India's premier export finance institution, said in a release.

Barclays, Citigroup and Standard Chartered Bank acted as the joint lead managers and book runners for the issue.