Exim Bank to raise up to $3 billion from overseas borrowings in FY21

The bank has raised $1.7 billion (about Rs 11,900 crore) of overseas borrowing through bond issuances and foreign loans in current financial year.

The Export-Import Bank of India (Exim Bank) is looking to raise up to USD 3 billion (about Rs 21,000 crore)from overseas borrowing in next financial year (2020-21), a top official said. The bank has raised USD 1.7 billion (about Rs 11,900 crore) of overseas borrowing through bond issuances and foreign loans in current financial year.

“As a going concern, not only I have to refinance my borrowing but I also need to have fresh borrowings for new business to come up. For any typical year, our gross borrowing requirement is USD 1.5-3 billion. The next fiscal also it is expected to be up to USD 3 billion,” Exim Bank Managing Director David Rasquinha said.

He was speaking to reporters after listing of the bank’s recently raised USD 1 billion bond on India International Exchange (India INX) platform. On January 6, the bank raised USD 1 billion through a 10-year 144A/Reg S bond, priced at CT10+150 basis points.

This was the third such issuance of 144A/Reg S bond by the bank under its USD 10 billion global medium term notes (GMTN) programme. In April to January, the bank raised USD 1.7 billion of foreign currency funds and is looking to raise another USD 800 million from the overseas market. “Our total foreign currency borrowing would be USD 2-2.5 billion in FY20,” the bank’s chief general manager and CFO Harsha Bangari said.

In August last year, the export finance institution raised USD 300 million equivalent from issuance of Samurai bond and another USD 50 million from social impact bond. It has also raised USD 350 million in foreign loans so far in FY20.

The bank’s USD 1 billion bond issuance attracted a total order book of over USD 2.7 billion, achieving more than 2.7 times subscription from 184 high-quality investors. In terms of geographic distribution, 44 per cent bonds were distributed in Asia, 36 per cent in the US and 20 per cent from EMEA (Europe, Middle East and Africa) region.

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