Mumbai: Export-Import Bank of India (Exim Bank), India’s premier export finance institution, successfully issued its first ever USD-denominated Socially Responsible Bond for US$ 50mn. The Bond is significant as it marks the first issuance by Exim Bank to tap investors seeking more socially responsible investment options. Socially Responsible Investing, also known as ethical and green investing, means avoiding industries that negatively affect the environment and its people. Social projects are projects, activities and investments that directly aim to help address or mitigate a specific social issue and/ or seek to achieve positive social outcomes. The funds raised from the bond will be allocated to infrastructure projects in the Mekong Region. The bond is named as Socially Responsible Mekong Region Development Bond considering projects from Cambodia, Myanmar and Vietnam.
The 3 year US$ 50 mn dollar SR Bond was issued at a fixed coupon of 2.385% per annum. Standard Chartered Bank acted as arranger for the offering. The bond marks the first issuance in private placement format under Bank’s Global Medium-Term Note Programme creating a new investor portfolio for the Bank. The bond is exclusively placed with The Dai-ichi Life Insurance Company, Limited. It is Japan’s first mutual company and provides insurance products and services.
Speaking on the occasion, Mr. David Rasquinha, Managing Director of Exim Bank, said that this innovative transaction is very significant for Exim Bank as it marks the first USD-denominated Socially Responsible bond offering by Exim Bank and the first time for The Dai-ichi Life Insurance Company, Limited to invest in Socially Responsible bond issued by an Indian issuer. It reinforces our commitment towards bank’s engagement in ethical and socially conscious themes. With this pilot socially responsible bond, Exim Bank will continue to explore opportunities under this theme to expand its investor base.
Ms. Harsha Bangari, Chief General Manager & Chief Financial Officer of Exim Bank said that the Socially Responsible bond issuance is an innovative way to tap a new funding source. Exim Bank has successfully expanded its investor base now to include a new class of socially responsible investor, The Dai-ichi Life Insurance Company.
Exim Bank has been raising foreign currency resources from the international market, which constituted approximately 88% per cent of the Bank’s total lendable resources as on March 31, 2019. Exim Bank aims to promote India’s international trade and investment. The Bank offers Indian companies a comprehensive range of products and services, supported by analysis and research, with a view to enhancing their international competitiveness. The Bank aggressively supports Indian exporting companies, especially medium-sized enterprises, in their globalisation efforts through a variety of lending programmes. Exim Bank of India has been rated as ‘BBB-’ by Standard and Poor’s, ‘Baa2’ by Moody’s and ‘BBB- (Stable)’ by Fitch, same as the rating of Government of India.
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