Exim Bank sells $750 mn bonds at 4 per cent
"The 10-year issue, the first from Exim Bank, has been a rocking success as it has been timed well. The pricing at 4.119 percent is the cheapest ever we have raised and is cheaper than the previous two 5-year issues this fiscal, as the India story got a major leg-up in the recent past from the finance ministry," Exim Bank Chairman and Managing Director T C A Ranganathan told PTI today.
Explaining the timing as the reason for cheap pricing, he said global liquidity improved since the resolution of the US fiscal cliff. Coupled with this, the bank got the benefit of being the first issuer from India in 2013.
Since traders were holidaying till last weekend, they lapped up the issue.
Ranganathan said there has been so much demand that the bank had to increase the issue size from the initial USD 500 million to USD 750 million, making it a benchmark issue.
The issue was oversubscribed 8.5 times, he said, adding this is part of the bank's European medium term note of USD 6 billion, of which it has raised USD 1.5 billion in FY13.
Asked about the rationale for a 10-year money (Exim Bank had in July raised USD 500 million five-year money end July and
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