Exim Bank rings bell at India INX with USD 1 bn, 10-year bond listing

Mumbai: The bell ringing ceremony for the USD 1 billion, 10-year bond issuance was conducted on 16th January, 2020 at BSE by Shri David Rasquinha, Managing Director, and Ms. Harsha Bangari, Chief General Manager & Chief Financial Officer of Exim Bank, in the presence of Shri V. Balasubramaniam, MD & CEO, INDIA INX.

The Export-Import Bank of India, on January 06, 2020, successfully priced a 10 year Bond of USD 1 bn, its third transaction in the 144A/Reg S format. The issue attracted a total order book in excess of USD 2.7 billion at close, thereby achieving more than 2.7 times subscription from 184 high-quality investors. The transaction was priced at the fair value of CT10+150 bps, well inside the initial price guidance of CT10+175 bps area, representing significant price tightening of 25 bps and zero new issue premium. In terms of geographic distribution, the bonds were distributed 44% in Asia, 36% in USA and 20% from EMEA region. In terms of distribution, the bonds were distributed to high quality investors with around 58% distributed to fund managers, 18% to banks, 13% to insurance and pension funds, 10% to Central Banks/Official Institutions and 1% to private banks.

Speaking on the occasion, Mr. David Rasquinha, Managing Director of Exim Bank, said, “The successful issuance of USD 1 bn, our third such issue, is a strong market opening trade from Exim Bank, following which many other Indian issuers are likely to access the foreign currency bond markets. All Exim Bank’s foreign currency bonds are already listed on India INX and it makes us proud to say that Exim Bank is cumulatively the largest bond issuer listed on India INX. Exim Bank continues to look forward to strengthening the relationship with Indian INX for its future issuances”

Ms. Harsha Bangari, Chief General Manager & Chief Financial Officer of Exim Bank said “This is a proud moment for Exim Bank as we mark today’s ceremony for listing of Exim Bank’s recent 144A/Reg S issuance of USD 1 billion on the India INX platform. The transaction marks the lowest 10 year coupon from any Indian issuer in USD markets especially in the backdrop of geopolitical tensions. We look forward to listing our future issuances at the India INX and hope to have played a pioneering role towards development of the Exchange.

Barclays, Citigroup, HSBC, J.P. Morgan, MUFG and Standard Chartered acted as Joint Lead Managers and book runners for the offering. Exim Bank of India has been rated as ‘Baa2 (Negative)’ by Moody’s, ‘BBB- (Stable) by S&P and ‘BBB- (Stable)’ by Fitch, same as the rating of Government of India.