Exim Bank plans $500 million bond sale to set benchmark for Indian NBFCs

Exim Bank plans to raise $500 million by issuing 10-year bonds, marking its first overseas bond sale in two years. The initial pricing is set at 130 basis points above the US Treasury yield, with expectations for tightening to 108 basis points. The bond issuance aims to establish a benchmark for future fundraising by Indian non-banking financial companies. In January 2023, Exim Bank raised $1 billion at a higher spread of 190 basis points above the US Treasury yield. Exim Bank's strong backing from the Indian government and the Reserve Bank of India supports its funding access. The bank's funding strategy includes a significant portion of foreign-currency borrowings, with a fully hedged position against currency risks.