Exim Bank To Raise Up To $3 Billion From Overseas Borrowings In FY21
Rs 2,000 currency notes. (Photographer: Dhiraj Singh/ Bloomberg)

Exim Bank To Raise Up To $3 Billion From Overseas Borrowings In FY21

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The Export-Import Bank of India is looking to raise up to $3 billion (about Rs 21,000 crore) from overseas borrowing in next financial year (2020-21), a top official said.

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

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

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

Also read: Exim Bank Plans To Raise $2.5 Billion In Overseas Funding Next Fiscal

This was the third such issuance of 144A/Reg S bond by the bank under its $10 billion global medium-term notes programme. From April to January, the bank raised $1.7 billion of foreign currency funds and is looking to raise another $800 million from the overseas market.

"Our total foreign currency borrowing would be $2-2.5 billion in FY20," the bank's chief general manager and Chief Financial Officer Harsha Bangari said. In August last year, the export finance institution raised $300 million equivalent from the issuance of Samurai bond and another $50 million from social impact bond.

It has also raised $350 million in foreign loans so far in FY20. The bank's $1 billion bond issuance attracted a total order book of over $2.7 billion, achieving more than 2.7 times subscription from 184 high-quality investors.

In terms of geographic distribution, 44 percent of bonds were distributed in Asia, 36 percent in the U.S. and 20 percent from EMEA (Europe, Middle East, and Africa) region.

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