Exim Bank raises ¥24 bn from bonds

Exim Bank raises ¥24 bn from bonds
Comment E-mail Print Share
First Published: Fri, Jun 01 2007. 12 14 AM IST
Updated: Fri, Jun 01 2007. 12 14 AM IST
Hong Kong: The Export-Import (Exim) Bank of India sold 24 billion yen (Rs720 crore) of bonds, pricing the debt at a lower yield after getting more than 30 billion yen of orders, an email to investors from the sale’s arrangers said.
The Exim Bank priced the five-year securities to yield 0.5 percentage point more than the yen London interbank offered rate (Libor), lower than the 0.54 percentage point guidance set on 29 May, the document shows. Barclays Plc. and Citigroup Inc. managed the sale.
Indian companies are raising record debt financing this year for expansion to meet demand in an economy that grew at the fastest pace in almost two decades last quarter. Borrowers led by ICICI Bank Ltd, India’s biggest lender to consumers, have sold $9.5 billion of bonds this year, including $3.8 billion of dollar-denominated debt, according to data compiled by Bloomberg.
“There has been an element of fatigue for Indian names in the market, with many Asian investors expressing concerns about credit limits and the potential new dollar-denominated issuance from Indian banks,” said John LeFevre, a Hong Kong-based syndicate banker at Citigroup. “The yen option proved to be a refreshing and strategic alternative for Exim Bank,” he added.
The Mumbai-based lender is paying 0.55 percentage point above Libor for $50 million of dollar-denominated floating-rate notes maturing in 2012. The yen deal yield is equivalent to 0.515 percentage point more than the dollar Libor.
The Exim Bank, which lends to support foreign trade, is raising funds to meet demand for trade financing as companies in India increase sales to overseas markets. Indian exports rose 25% to $101 billion in the year ended 31 March 2006, exceeding a target of $92 billion.
Comment E-mail Print Share
First Published: Fri, Jun 01 2007. 12 14 AM IST
More Topics: Money Matters | Bonds |