02 August 2016 Current Affairs: Export-Import Bank of India (Exim Bank) has announced raising of $1 billion (about Rs 6,700 crore) by selling bonds to overseas investors.
Initially announced for $500 million, the issue was upsized to $1 billion based on strong demand from the investors.
The issue attracted a total order book in excess of $2.50 billion from over 157 investors. This was the largest issuance ever for Exim Bank and also the largest single tranche issuance out of India in 2016.
The bank is the closest proxy to sovereign in the international markets and the 10 year issuance was based on investors' feedback, so that benchmark 10 year curve out of India could be established.
The funds thus raised will be used by the bank to support Indian project exports, overseas investment by way of long term credit and its lines of credit portfolio.
Having initially marketed the deal at 210 basis points over US Treasuries, the bank was able to achieve a final pricing of 187.5 basis points over US Treasuries, to yield 3.383% on a coupon of 3.375% resulting in negative new issue premium against a very strong market backdrop.
Exim Bank aims to promote India's international trade and investment.
The bank supports Indian exporting companies, especially medium-sized enterprises, in their globalisation efforts through a variety of lending programmes.
FreshersLive - No.1 Job site in India. Fresherslive Current Affairs 2017 section offers informative quiz questions with answers regarding latest current affairs today for all sorts of competitive exams like UPSC, TNPSC , IFS, IAS, IPS, railway exams (RRB) and banking exams like IPBS PO, IPBS clerk, Federal Bank PO, ICICI, SBI, RBI legal officer & Grade officer posts and much more. Register with us to get latest Current Affairs Updates. Also get latest Current Affairs news and quiz Updates for free alerts daily through E-mail