Bond Market News

EXIM Bank of India plans to raise $3bn via offshore bonds in the current financial year 2022-23. Half of the funds will be used for new lending and the remaining half for refinancing a part of its old debt.  Bank’s MD Harsha Bangari said that treasury rates have started increasing in international markets and if the benefit of low cost is spotted, the bank will take advantage of it. Otherwise, EXIM India’s normal borrowing program will remain, he added. Business Standard notes that in 2021, EXIM India’s cost of funds came down and the duration was extended, as it tried to refinance high-cost liabilities. EXIM India has been a regular issuer in the dollar bond markets over the last few years. In 2021, it raised $1bn via a 2.25% bond due 2031, currently trading at 82.6 cents on the dollar, yielding 4.7%. In 2020, it raised $1bn via a 3.25% bond due 2030, currently trading at 91.2 cents on the dollar, yielding 4.61%. In October 2021, EXIM India said that it was planning to raise about $1bn via 10Y offshore bonds in January 2022 predominantly for its lending operations. However, it has not yet come to the dollar bond market yet.

Exim Bank’s dollar bonds were trading lower, its 3.375% 2026s down over 0.3 points to 96.63 yielding 4.24%.

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