Exim Bank Raises $500 Mn In Overseas Bond Sale
MUMBAI: Exim Bank raised $500 million in an overseas bond sale programme in a 5.5-year money that was oversubscribed by over six-times and priced at a yield of 3.96 per cent, according two merchant bankers.
The bank has given an initial pricing of U.S. treasury plus 245 bps but due to high demand the final pricing was set at five-year treasury plus 220 bps, thus witnessing a 25 bps tightening in the final pricing, offering an effective yield of 3.96 per cent, said a merchant banker.
The RegS (Regulation S) issue carries a Baa3 rating by Moody's and BBB- by S&P. Regulation S bonds are senior unsecured debt instruments sold to foreign investors in which U.S.-based American investors cannot participate.
During the current fiscal, Exim has already raised $ 650 million in overseas bond offerings from the Australian, Singapore and Japanese (Uridashi) bond markets.
The state-run export finance agency could not be contacted immediately.
By geography, 62 per cent were Asia-based investors, 23 per cent from Europe and the rest offshore U.S. investors.
While 60 per cent of the issue was lapped up by fund managers, 20 per cent was allotted to banks, 9 per cent picked by central banks, pensions and sovereign wealth funds, 6 per cent by insurers and 5 per cent by private lenders.
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