The Export-Import Bank of India (Exim Bank) and gold loan financier Manappuram Finance Ltd on Tuesday said they raised funds by issuing dollar bonds.
While Exim Bank raised $1 billion by issuing 10-year bonds, Manappuram raised $300 million through three-year bonds.
Exim Bank said its transaction marked the lowest coupon from any Indian issuer for a 10-year USD issuance. “The issue attracted a total order book in excess of $2.7 billion at close, thereby achieving more than 2.7 times subscription from 184 high-quality investors. The funds raised will be used to support Indian project exports, overseas investment by way of long-term credit and its lines of credit portfolio," the lender said.
“With a strong market opening trade from Exim Bank, many other issuers are likely to follow suit to access the foreign currency bond market. The transaction is a remarkable achievement considering significantly weaker market backdrop owing to geopolitical tensions," said David Rasquinha, managing director, Exim Bank.
Manappuram Finance priced its three-year notes at 5.9%, stating that strong investor interest helped it price the bonds lower than the initial guidance of 6.25%.
“Following the exceptional interest shown by over a hundred high-quality investors, the final order book exceeded $1.15 billion and the company was able to tighten the pricing to 5.90%," Manappuram said.