NEW DELHI: Export Import Bank (Exim Bank) of India on Tuesday raised $1 billion through an overseas bond sale offering just 2.25 per cent for the ten-year instrument, setting a new low in pricing. The issue was oversubscribed over 3.5 times.
In Asia, in fact, the bonds were oversold within two hours from launch, according to Exim’s managing director David Rasquinha.
“With the upsurge in GST numbers, improvement in GDP, and the recent approval of vaccines, the confidence in the India story is surging once again,” said Rasquinha, adding that many other Indian issuers are likely to follow suit to access the foreign currency bond market.
In terms of geographic distribution, the bonds were distributed 55 per cent in Asia, 29 per cent in the US, and 16 per cent in the EMEA (Europe, the Middle East and Africa) region.
In terms of distribution, around 68 per cent went to fund managers, 17 per cent to sovereign wealth funds, central banks and insurance companies, 14 per cent to banks and 1 per cent to private banks and others, the financial institution said in a statement.