EXIM Bank Eyes ₹99,500 Crore Fundraising Target for FY27 Despite Global Headwinds

Export-Import Bank of India (EXIM Bank) plans to raise around ₹99,500 crore during FY27 through a mix of domestic and overseas borrowings, according to Managing Director Harsha Bangari, as per Reuters report.  

The proposed borrowing is higher than the nearly ₹86,000 crore raised in the previous financial year. 

The institution expects to raise around ₹66,000 crore from the domestic market through bonds, loans and certificates of deposit. Overseas fundraising is estimated at nearly $3.5 billion through bilateral and syndicated loans. 

Overseas Funding Conditions Improve 

The bank said pricing conditions in overseas debt markets have improved in recent months. The spread on EXIM Bank’s 10-year bond issued in January narrowed to 70 basis points from 86 basis points over the past 3 months. 

According to the bank, the decline in spreads has supported confidence around foreign currency borrowing. However, it said fresh borrowing decisions would depend on market conditions and developments in global trade routes. 

The bank did not indicate a timeline for the planned overseas borrowing programme. 

West Asia Tensions Affect Trade 

EXIM Bank said the conflict involving Iran and disruptions around the Strait of Hormuz have affected shipping movement and trade activity. Freight costs have increased amid uncertainty in the region, while exporters have also faced delays in logistics. 

The lender said prolonged instability in West Asia could slow imports linked to Indian contracts and infrastructure projects abroad. It added that the situation could affect the pace of trade-related financing during the financial year. 

The bank’s exposure to the Middle East and North Africa region stands at around ₹5,700 crore. Total exposure across markets is estimated at nearly ₹3.5 trillion. 

Loan Growth Seen Moderating 

The institution expects loan growth to moderate to around 10% in FY27, compared with 12% in the previous year. EXIM Bank provides export finance and supports overseas buyers of Indian goods through credit facilities and loan guarantees. 

The lender also extends lines of credit to governments and institutions across developing economies in Africa, Asia, and Latin America. 

Read More: SEBI Proposes Higher Position Limits for Agricultural Commodity Derivatives! 

Conclusion 

EXIM Bank said it continues to maintain a pipeline of lending proposals for the current financial year. Borrowing activity and loan growth are expected to remain linked to global trade conditions and geopolitical developments in West Asia. 

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