Exim Bank plans to raise $3 billion through overseas bonds in FY23

Export Import (Exim) Bank of India plans to raise around $3 billion in 2022-23 (FY23) via overseas bonds to support fresh lending and refinance a portion of the old debt. Harsha Bangari, managing director, India Exim Bank, said that treasury rates (yields on government bonds) have started going up in international markets.

The bank, said Bangari, will keep an eye on the markets. If the benefit of low cost comes in, the bank will take it. Else the normal borrowing programme will remain. Half the money is to be used for fresh lending and the balance to refinance maturing debt. Last year, the bank tried to refinance high-cost liabilities. The fund costs have come down and extended the duration.

Banks, financial institutions, and corporates have taken the benefit of a benign interest-rate environment the world over due to huge liquidity in the system infused by central banks and governments to battle the impact of the Covid-19 pandemic.