India Exim Bank Unveils Landmark USD 1 Billion Bond Issue

India Exim Bank has launched a groundbreaking USD 1 billion bond issuance, marking the tightest spread for a 10-year public issuance from India. This milestone signifies robust investor confidence and a strong start for Indian issuers in international markets.

India Exim Bank announced on Tuesday that it has successfully raised USD 1 billion through the issuance of 10-year bonds in the international market. This achievement makes it the first Indian organization to issue dollar bonds in 2025. The bonds were issued in the 144A/Reg-S format, allowing Qualified Institutional Buyers (QIBs) to trade without SEC registration outside the U.S.

With a promising start to the year and favorable market conditions at Asia's market opening, India Exim Bank capitalized on high demand, executing the transaction intraday and tightening the pricing by 30 basis points from the initial guidance to achieve UST10+100 bps. This issuance not only represents the tightest spread for a 10-year public issuance from India but also the tightest 'BBB-' 10-year USD issuance from Asia ex-Japan.

The geographic distribution of the bond sales included 50% in Asia, 32% in the EMEA region, and 18% in the USA. Distribution among investor types saw 64% going to asset and fund managers, 18% to banks, and 16% to insurance, pension funds, and the public sector. India's Department of Financial Services highlighted this issuance as a testament to the strong confidence of overseas investors in India's economic narrative, paving the way for a promising year for Indian issuers.

(With inputs from agencies.)