Exim Bank hits overseas bond market to raise over US $500 million

Exim Bank on Wednesday hit the international debt market with a benchmark issue to raise over US $500 million by selling senior unsecured notes to overseas investors.

Exim Bank has hit the market with a benchmark 5.5 year issue as part of its US $6 billion medium term notes. The issuer has given an initial price guidance of 175 basis points over the US treasury.

The issue will be priced during the London market hours, merchant banking sources told PTI in Mumbai.

This is the fourth international bond sale by domestic entities in 2015, out of which two were by Reliance Industries (RIL), which on Tuesday night closed a US $750-million deal, within a fortnight of it raising US $1 billion.

The issue has been assigned Baa3 ratings with a stable outlook by Moody's. The Baa3 rating is the same as government's rating.

The proposed notes, to be issued through the bank's head office under its US $6 billion medium term note programme, will have 5.5 year maturity and will be listed on the Singapore Exchange.

The rating outlook is stable, Moody's said in a note from Singapore. Exim Bank could not be immediately contacted for comments.