India Exim Bank Raises USD 1 Billion Through 10-Year Dollar Bonds

India Exim Bank has raised USD 1 billion through 10-year USD-denominated bonds in the international market. This marks the first dollar bond issuance by an Indian entity in 2025. The issuance was carried out in the 144A/Reg-S format, which facilitates trading among Qualified Institutional Buyers (QIBs) without SEC registration under Rule 144A and trading outside the U.S. under Reg-S.

Tightest Spread Achieved

Reports indicate that the bond was priced at UST10+100 basis points (bps), following a tightening of 30 bps from initial guidance. The issuance also featured a negative new issue concession of 5 bps. This is being reported as the tightest spread for a 10-year public bond from India and among ‘BBB-‘ rated issuances in Asia, excluding Japan.

Geographic Participation

According to reports, the bonds saw participation from investors across regions, with 50% allocated to Asia, 32% to Europe, the Middle East, and Africa (EMEA), and 18% to the United States.

Breakdown of Investors

In terms of investor categories, reports suggest that 64% of the allocation went to asset and fund managers, 18% to banks, and 16% to insurance companies, pension funds, and public-sector entities.

Demand for the Bond

The bond issuance reportedly attracted significant interest, with a peak order book of over USD 2.7 billion. The demand is attributed to the quasi-sovereign nature of the bank and India’s inclusion in global emerging market bond indices.

Purpose of Funds

Reports confirm that the USD 1 billion raised, equivalent to approximately ₹8,570 crore, will be utilized to support ongoing and future projects globally. This issuance is noted as a key development for Indian issuers in international debt markets in 2025, showcasing participation from high-quality investors across the globe.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.