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Export-Import Bank of India (Exim Bank) has raised A$200 million through an offshore-debt offering that would mature in April 2018.
This is significant as it is the first Australian dollar-denominated bond to be issued by an Indian issuer.
The unsecured Notes, which will carry an annual coupon of 5.76 per cent, are being issued by Exim Bank’s London Branch and will be listed at the Singapore stock exchange.
They are being issued as part of the $6-billion medium term note programme of the bank. Moody’s Investors Service had assigned a Baa3 rating for the unsecured Notes.
This is significant as it is the first Australian dollar-denominated bond to be issued by an Indian issuer.
The unsecured Notes, which will carry an annual coupon of 5.76 per cent, are being issued by Exim Bank’s London Branch and will be listed at the Singapore stock exchange.
They are being issued as part of the $6-billion medium term note programme of the bank. Moody’s Investors Service had assigned a Baa3 rating for the unsecured Notes.
Swap agreement
State-owned Exim Bank has entered into a swap agreement to convert the Australian dollars, mobilised through this bond issue, into US dollars, it is learnt.
“The success of this transaction bodes well for other Indian issuers as it will open doors and provide them an opportunity to tap Australian dollar market in future,” David Rasquinha, Executive Director, Exim Bank, told Business Line.
Exim Bank had sought to raise only A$100 million through the debt offering.
But given the strong response, Exim Bank decided to retain A$200 million, Rasquinha said. Exim Bank decided to look at Aussie dollars as part of its ongoing efforts to go in for diversification of currencies as well as investor base.
In terms of categories, the debt offering saw participation from about 50 accounts represented by banks, pension and insurance funds, mutual funds besides retail (private banks).
Investors were mainly from Singapore, Hongkong, and European countries, including Switzerland.
Deutsche Bank India and ANZ Banking Corp were lead managers for the transaction.
Sunil Agarwal, Managing Director and Head of Institutional Clients Group, Deutsche Bank India, said there is lot of interest for India related credit.
The Exim Bank transaction will open up the Aussie dollar denominated market for other Indian issuers.
It will facilitate more Indian issuers to tap that market, Agarwal said.
Indian issuers had until few years back been issuing only US dollar denominated bonds in the overseas markets.
But in the last 2-3 years, they have diversified the currencies by issuing bonds in Euros, Swiss Francs, Singapore dollars and now in Australian Dollars, market observers pointed out.
srivats.kr@thehindu.co.in
Source: thehindubusinessline
“The success of this transaction bodes well for other Indian issuers as it will open doors and provide them an opportunity to tap Australian dollar market in future,” David Rasquinha, Executive Director, Exim Bank, told Business Line.
Exim Bank had sought to raise only A$100 million through the debt offering.
But given the strong response, Exim Bank decided to retain A$200 million, Rasquinha said. Exim Bank decided to look at Aussie dollars as part of its ongoing efforts to go in for diversification of currencies as well as investor base.
In terms of categories, the debt offering saw participation from about 50 accounts represented by banks, pension and insurance funds, mutual funds besides retail (private banks).
Investors were mainly from Singapore, Hongkong, and European countries, including Switzerland.
Deutsche Bank India and ANZ Banking Corp were lead managers for the transaction.
Sunil Agarwal, Managing Director and Head of Institutional Clients Group, Deutsche Bank India, said there is lot of interest for India related credit.
The Exim Bank transaction will open up the Aussie dollar denominated market for other Indian issuers.
It will facilitate more Indian issuers to tap that market, Agarwal said.
Indian issuers had until few years back been issuing only US dollar denominated bonds in the overseas markets.
But in the last 2-3 years, they have diversified the currencies by issuing bonds in Euros, Swiss Francs, Singapore dollars and now in Australian Dollars, market observers pointed out.
srivats.kr@thehindu.co.in
Source: thehindubusinessline
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