Exim Bank of India has raised $1 billion through a 10-year USD-denominated bond, achieving the lowest-ever spread of 100 basis points over 10-year US treasuries for a BBB-rated issuer in Asia. One basis point is 0.01 percentage point. 

This landmark transaction underscores the strong confidence of global investors in the India story, setting a positive tone for Indian issuers in international capital markets in 2025.

With the US yield at 4.63 per cent, Exim Bank’s bond has been priced at 5.63 per cent. The peak order book for this bond offering exceeded $2.7 billion.

Exim Bank’s bond issuance has been hailed as a “fantastic start to the year” for Indian entities tapping global markets. The issuance witnessed significant participation from a diverse pool of investors across geographies (Asia, EMEA region,and the US), further cementing India’s position as a credible and attractive investment destination.

“Fantastic start to the year by Indian issuers in global capital markets, with state-owned @IndiaEximBank raising $1 bn 10-year USD-denominated bonds at lowest ever spread (100bps) for USD-denominated public bond by a BBB- rated issuer in Asia”, Department of Financial Services (DFS) said in a social media post in platform “X” on Tuesday.

“This demonstrates the strong confidence of overseas investors in the India story. This landmark transaction marks a strong start to the year for Indian issuers in the international debt markets, supporting Exim Bank’s mandate and contributing to the vision of #ViksitBharat”.

BofA Securities,HSBC, Standard Chartered Bank, Citigroup, J P Morgan acted as joint lead managers and joint book runners for the international offering.  

Exim Bank is rated BBB-(positive) by S&P, BBB-(stable) by Fitch and Baa3 (stable) by Moody’s.

Strong Global Investor Sentiment

The successful bond issuance comes amidst a favourable macroeconomic environment for India. With the country retaining its position as the fastest-growing major economy globally, the strong response to Exim Bank’s offering signals heightened confidence in India’s economic stability and growth prospects.

Experts see this as a precursor to increased activity by Indian issuers in global debt markets in 2025. “Exim Bank’s success provides a benchmark for other Indian entities. It demonstrates the depth of international appetite for high-quality issuances from India,” said a market analyst.

Contributing to India’s Growth Vision

The transaction is also seen as a step towards realising the vision of a developed India by 2047. Exim Bank’s proactive participation in global capital markets ensures a steady flow of foreign capital to fuel trade and infrastructure initiatives.

With this issuance, Indian entities are expected to gain greater visibility and acceptance in global debt markets, further solidifying their standing among global investors, economy watchers said.