Eximbank India taps Japanese Samurai bond market with JBIC guarantee

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Export-Import Bank of India (Exim Bank) issued 10-year bonds in the Japanese bond market (Samurai Bonds) for Yen 20 billion. Samurai bonds are yen-denominated bonds issued by foreign government or company in the Tokyo bond market. A JBIC guarantee covers the principal and part of the interest of privately placed Samurai bonds. Daiwa Securities, Mitsubishi UFJ Morgan Stanley Securities, Mizuho Securities and SMBC Nikko Securities are Joint Lead Arrangers to the issue. The guarantee was extended under JBIC’s :Guarantee and Acquisition toward Tokyo Market Enhancement” (GATE) facility. JBIC supports Samurai bond issues by foreign entities in the Tokyo bond market by providing credit enhancement. Thereby, JBIC helps expand and diversify the range of investment opportunities available to Japanese investors and help activate the Samurai bond market. This transaction was a repeat issuance for Exim Bank in the Samurai bond market after its inaugural JBIC-guaranteed Samurai bond in 2011. The order book was oversubscribed by 1.5 times despite the rising uncertainties in Japanese markets following the third quarter GDP data for Japan. The final issue size was JPY 20 billion and the bond was priced at 0.97% (YSO+27 bps) for 10 years. Exim Bank achieved the tightest spread and the lowest coupon, the first sub-one percent, in the history of the GATE facility. The previous record for the lowest coupon was held by the bonds issued by the Government of Turkey (1.05%). The proceeds of the Samurai bonds will be used by Exim Bank to fund Indian project exports to Sri Lanka for financing railway projects in Sri Lanka.

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