Exim Bank raises SGD250 mn from overseas bond sale, sets new record pricing

This is the second overseas debt raising by the bank in 40 days, when on August 1, it had sold USD 500 million bonds at a coupon of 4 percent, which was just 348 basis points above the US treasury's. The issue had an over-subscription of five times.

That foreign investors are making a beeline for quality debt instruments from Indian institutions was yet again clear from huge demand the latest Exim Bank issue has generated-- a good 2.5 times the offer size.

Exim Bank chairman and managing director TCA Ranganathan could not be reached over phone.

According to sources at the merchant bankers-Citigroup India and StanChart-, the issue had a guidance pricing between 3.375 and 3.350 per cent.

"But the issue was finally priced at 3.375 per cent given the huge demand and the 100 per cent sovereign guarantee Exim offers," a merchant banking source said, adding the yield will also be same as the price is 100 percent at par.

Commenting on the success of the bond sale, Citi India head for capital markets origination Rajiv Nayar said, "This was an excellent issuance by a sophisticated issuer like Exim Bank. Their inaugural five-year SGD 250 million bond was strongly subscribed by several regional asset managers and private banks resulting in tight pricing of

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