Exim Bank raises $1 billion via 10-year bonds
Summary
Export and Import Bank of India ( Exim Bank ) has raised between $750 million and $1 billion from overseas investors by selling 10-year bonds in the first such fundraising in two years, two people familiar with the deal said.The government-owned trade financier settled for a final price guidance of 100 basis points above the 10-year US Treasury yield , tighter than the earlier anticipated spread of 130 basis points above the benchmark. The numbers are still being updated, and the company will finally take a call on how much it wants to raise, said a person aware of the deal.The final pricing of the bond was tighter than the 108 basis points above the US 10-year treasury expected by CreditSights, part of the US based rating agency Fitch. Exims pricing will most likely set the benchmark for the rest of the year as many Indian NBFCs plan to raise dollar funds in the immediate future.The sovereign-backed financiers timing of the issue roughly mirrors the last such bond sale. Exim had then garnered an order book of $3.6 billion at a spread of 190 basis points above the 10-year US treasury, which means the current deal represents a 90 basis points tightening from two years ago.That bond was priced at an effective yield of about 5.50% as the benchmark US treasury was trading at 3.60% then. "Its quasi-sovereign status and backstops from the government of India and the RBI ensures that Exim has no issues with funding access and capitalization , CreditSights said in a note.