BackExim Bank raises $500 mln to finance green projects
The bonds will mature in five years and the money raised will be used to finance environmental friendly projects in Bangladesh and Sri Lanka
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Mumbai: Export Import Bank of India (Exim Bank) has raised $500 million by selling bonds to a clutch of foreign investors based in Europe and Asia at a coupon rate of 2.75%.
The bonds will mature in five years and the money raised will be used to finance environmental friendly projects in Bangladesh and Sri Lanka, the bank said in an email statement.
The so-called green bonds closed late on Tuesday evening and was subscribed 3.2 times the issue size across 140 accounts.
Earlier in February too the bank had raised $500 million by selling 5.5 year bonds at 2.75% coupon. The bank which finances inbound and outbound trade from India is a regular in the international bond market.
The issue attracted over $1.6 billion of bids of which 58% were from fund managers and 20% from banks, 60% of the bond investors were from Asia.
Bank of America Merrill Lynch and JP Morgan Chase & Co were the bankers to the issue.
“The above transaction is significant as it marks the first USD-denominated green bond offering out of India as well as the first benchmark-sized green bond out of Asia in 2015 and the third ever green bond issuance out of Asia. It provides Exim Bank an opportunity to expand its investor base and to support an important market as investors seek more socially responsible investment options," the bank said in the statement.
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