Exim Bank mops up $1 billion at record low rate

The raised funds will be used to support project exports, said the bank

The Exim Bank on Tuesday raised $1 billion through an overseas bond sale offering just 2.25 per cent for the ten-year money, setting a new low in pricing.

The issue was oversubscribed over 3.5 times, managing director David Rasquinha said, adding in Asia when the issue was launched the bonds were oversold within two hours.

"The coupon of 2.25 per cent is a record low for any 10-year bond issuance out of the country till date," he added.

The Exim Bank, with a substantially dollarised balance sheet, is one of the largest domestic issuers of long-term debt in the international debt capital markets and its paper is treated as quasi-sovereign.

The funds thus raised will be used to support project exports, overseas investment by way of long-term credit and its export lines of credit portfolio, the bank said.