Mumbai, January 29, 2018 : The Export-Import Bank of India, on January 25, 2018, successfully launched a 10 year Bond issue of USD 1 bn, its second transaction in the 144A/Reg S format. This was the largest issuance ever for Export-Import Bank of India having previously raised a similar sized issuance in July 2016. The issue attracted a total order book in excess of USD 1.8 billion thereby achieving approx. 1.8x over subscription of the issue size from over 100 high-quality global investors. The funds thus raised will be used by the Bank to support Indian project exports, overseas investment by way of long term credit and its lines of credit portfolio.
Having initially marketed the deal at 150 basis points over U.S. Treasuries, the Bank was able to achieve a final pricing of 125 basis points over U.S. Treasuries, to yield 3.897% on a coupon of 3.875%. The Notes achieved the tightest ever spread over US Treasury for an Indian entity for a 10 year issuance. In terms of geographic distribution, the Notes were distributed 60% in USA, 22% in Asia and 18% in the Europe. Barclays, Citigroup, J.P. Morgan, MUFG and Standard Chartered Bank acted as Joint Lead Managers and book runners for the offering. Exim Bank of India has been rated as ‘Baa2 (Stable)’ by Moody’s and ‘BBB- (Stable)’ by Fitch, same as the rating of Government of India.
In terms of distribution, the notes were distributed to high quality fixed income accounts with around 60% distributed to fund and asset managers, 19% to insurance and pension funds, 11% to banks and 10% to sovereign / public sector.
Speaking on the occasion, Mr. David Rasquinha, Managing Director of Exim Bank, said, “With a largely dollarized loan book, the Bank is a regular issuer in the international debt capital markets. This was our second foray to the 144A market as part of our constant endeavour to further strengthen and foster long term relationships with global investors. Through a well-designed and finely executed marketing strategy, we achieved the tightest ever 10 year US treasury spread by an Indian issuer while simultaneously attracting top quality investors in the order book. Through this issuance Exim has yet again created a liquid benchmark 10 year curve out of India”.
Mr. Debasish Mallick, Deputy Managing Director added “The roadshows in Hong Kong, Singapore, London and key US centres were successful in marketing the investment proposition to high quality institutional investors. When the bond was launched, these investors responded with encouragingly large orders, enabling the book to build rapidly and enabling a fine pricing”.
Exim Bank aims to promote India’s international trade and investment. The Bank offers Indian companies a comprehensive range of products and services, supported by analysis and research, with a view to enhancing their international competitiveness. The Bank aggressively supports Indian exporting companies, especially medium-sized enterprises, in their globalisation efforts through a variety of lending programmes.