1. Exim Bank raises $500 m via five-year green bonds

Exim Bank raises $500 m via five-year green bonds

The bank will use the net proceeds from the sale of the notes to fund eligible green projects in countries like Bangladesh and Sri Lanka.

By: | Mumbai | Updated: March 26, 2015 12:56 AM

Export-Import Bank of India has raised $500 million through a 5-year Reg S green bond issue on Tuesday, according to a press release. The eurodollar Green bond issue was priced 147.50 basis points over the US Treasuries (UST) at a fixed coupon of 2.75% per annum, the release said.

Exim Bank of India has been rated as ‘BBB-’ by Standard and Poor’s and ‘Baa3’ by Moody’s, same as the rating of the government, said the release.

The offering saw a majority (58%) of participation from fund managers, while banks (20%), sovereign wealth funds/insurance companies (18%) were the other major investor classes, it added.

The release pointed out that the bank will use the net proceeds from the sale of the notes to fund Eligible Green Projects in countries including Bangladesh and Sri Lanka.

Earlier, Exim bank had raised $500 million through bonds of tenure of 5.5 years in February.

“The issue was distributed 60% to Asian investors, 30% to EMEA (Europe, Middle East and Africa) and rest to offshore US investors,” the release said. Bank of America-Merrill Lynch and JP Morgan acted as joint lead managers on the offering, it said.

“We are pleased to see the robust demand for our transaction despite recent market volatility. We were able to upsize the transaction to US$500mm from initial indication of US$250-300mm based on strong investor response,” said David Rasquinha, deputy managing director at Exim Bank.

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