The Export Import Bank of India raised $1 billion through US dollar-denominated bonds on Thursday and investors said the aggressive pricing of the first such issue in 2025 could mean another robust year for this type of papers.
EXIM sold dollar-denominated 10-year bonds at 5.50%, a spread of 100 basis points above the U.S. Treasury yield and 30 basis points below its initial forecast. This is the tightest yield spread ever recorded for a 10-year issue in India, the creditor said.
Indian companies raised about $12.05 billion through dollar bonds last year, more than double the $5.70 billion raised in 2023, according to data from financial data aggregator Cbonds.
Shoaib Ahmed, director of ANZ’s debt capital markets team based in Singapore, expects dollar debt issuance to remain robust in 2025, driven by both creditors and non-financial companies. banking (NBFC) in the public and private sectors.
“We believe that NBFC issuances will be further influenced by the impact of the prevailing regulatory regime on their fundraising options, in addition to all-in costs, which will naturally be influenced by the movement in INR rates and of the USD.”
Last year, the Federal Reserve’s rate-cutting cycle was a positive factor, said Maksim Zenkov, deputy head of emerging markets fixed income at Cbonds.
“Improving investor confidence in India’s growth-related debt also played a supportive role.
This year, according to ANZ’s Ahmed, high yields in the United States could be an important factor, but credit spreads remain very attractive for Indian companies amid strong investor appetite for issuers of the region.
EXIM Bank said half of the bonds were distributed in Asia, about a third in the Europe, Middle East and Africa (EMEA) region and 18% in the United States.
The senior notes will be rated Baa3, BBB- and BBB- by Moody’s, S&P and Fitch Ratings, respectively, consistent with the issuer’s rating.
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