EXIM Bank Raises $1 Billion via Dual-Tranche Dollar Bond Issue at Aggressive Pricing
The Export-Import Bank of India (EXIM Bank) has successfully accepted bids worth $1 billion through a dual-tranche issuance of longer-duration U.S. dollar-denominated bonds, marking the first such overseas debt sale from India in 2026, according to merchant bankers. The lender mobilised $500 million each through 10-year and 30-year bonds, priced at 5.00% and 5.75% respectively. The 10-year tranche was issued at a spread of 85 basis points over the U.S. 10-year Treasury yield, while the 30-year tranche carried a spread of 95 basis points over the comparable benchmark.
The issue drew strong investor demand, enabling EXIM Bank to tighten pricing significantly from its initial guidance range of 115–140 basis points. Analysts at U.S.-based brokerage CreditSights noted that the final pricing appeared aggressive, estimating the fair value spread for the bonds in the range of 90–105 basis points. They added that the 30-year tranche is expected to eventually trade in line with the 10-year offering over time. The bonds carry a BBB– rating from Fitch Ratings, consistent with the issuer’s sovereign-backed credit profile.
The bonds will be listed across Singapore, London, and India, with proceeds earmarked for funding activities including overseas investment financing and the import of capital goods. EXIM Bank did not respond to a Reuters request for comment on the issuance. Bankers involved in the deal said the transaction underscores continued global investor confidence in India-linked sovereign and quasi-sovereign issuers despite tighter pricing conditions.
Pic Courtesy: google/ images are subject to copyright
