BackExim Bank to raise Rs1,095 cr from Japanese bond market
Exim Bank to raise Rs1,095 cr from Japanese bond market
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New Delhi: Japan Bank for International Cooperation (JBIC) on Thursday said it will provide guarantee to the proposed ₹ 1,095 crore bond issuance from Exim Bank in the Japanese market.
JBIC will provide guarantee for bonds equivalent to 20 billion yen, issued by Exim Bank in Japan’s bond market and these funds will be utilised in India, the Japanese bank said in a statement.
State-owned Exim Bank provides credit facility for import and exports.
The guarantee will cover the principal and part of the interest of privately placed Samurai bonds by Exim Bank, it said.
Samurai bonds are yen-denominated and issued by a foreign government or company in the Tokyo bond market.
The guarantee was extended under JBIC’s Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility.
As part of efforts to fulfil its mission of maintaining and improving the international competitiveness of Japanese industries, JBIC supports Samurai bond issues by foreign entities in the Tokyo bond market by providing credit enhancement, it said.
This is the first guarantee for Samurai bonds issued by a government agency under the GATE facility as well as the first guarantee for Samurai bonds provided for an Indian issuer.
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