EXIM Bank starts 2026 with $1 billion bond issue: Bankers

The Export-Import Bank ‍of India (EXIM Bank) has accepted bids worth $1 billion for its dual-tranche longer-duration ⁠U.S. dollar-denominated bonds, two merchant bankers said on Tuesday, in the first such debt issue in the country for 2026. The ‌lender raised $500 ‌million through 10-year bonds at 5.00%, a spread of 85 basis ‌points over the 10-year U.S. Treasury yield, and a similar amount through the sale of 30-year bonds at 5.75%, a spread of 95 bps over the comparable U.S. yield The lender initially provided guidance on a spread of 115-140 bps, but strong demand ‌led to ‍aggressive pricing. EXIM Bank did not reply ‍to a Reuters query seeking comment. Analysts at ‌U.S.-based brokerage CreditSights said in a note that they expected the fair value for the issuance to be a spread of 90-105 bps, indicating the current pricing is aggressive. "Given that the longer duration 30-year tranche will likely tighten to trade ‍flat to the 10-year over time, we thus see fair value for the 30-year ‍at a ⁠spread of ⁠105 bps," it said. The bonds are rated BBB- by Fitch Ratings, which is in line with the issuer rating. The bonds will be listed in Singapore, London, and India, and the proceeds will be used for funding, including loans for overseas investment and the import of capital goods, the bankers added.