EXIM Bank Kicks Off 2026 with $1 Billion Dual Tranche Global Bond Issue
Export-Import Bank of India successfully completed a $1 billion dual tranche global bond issue, marking 2026's first major Indian debt issuance. The transaction included $500 million each in 10-year bonds at 5.00% and 30-year bonds at 5.75%, with spreads of 85 and 95 basis points respectively over US Treasuries. The aggressive pricing, significantly tighter than initial guidance of 115-140 basis points, reflects strong investor demand for Indian paper.
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Export-Import Bank of India has successfully completed a landmark $1 billion dual tranche global bond issue, marking the first major debt issuance from the country in 2026. The government-backed financial institution achieved aggressive pricing through strong investor demand, raising $500 million each through 10-year and 30-year bonds.
Bond Pricing and Market Response
The bond issue demonstrated exceptional market confidence, with both tranches achieving significantly tighter spreads than initial guidance. The aggressive pricing reflects strong institutional investor appetite for Indian paper amid favorable global market conditions.
| Bond Details: | Final Terms |
|---|---|
| 10-Year Bond | |
| Amount Raised: | $500 million |
| Final Pricing: | 5.00% |
| Spread: | 85 basis points over US Treasury |
| Initial Guidance: | 115-140 basis points |
| 30-Year Bond | |
| Amount Raised: | $500 million |
| Final Pricing: | 5.75% |
| Spread: | 95 basis points over US Treasury |
| Initial Guidance: | 115-140 basis points |
Analyst Assessment and Market Positioning
Analysts at US-based brokerage CreditSights noted that the current pricing appears aggressive, with their assessment indicating fair value for the issuance at a spread of 90-105 basis points. The firm expects the longer duration 30-year tranche to tighten over time, potentially trading flat to the 10-year bond.
The bonds carry a BBB- rating from Fitch Ratings, aligned with the issuer rating. This rating reflects the strong sovereign backing and the institution's established position in India's export finance ecosystem.
Historic 30-Year Issuance and Market Significance
The 30-year tranche represents a significant milestone for Indian financial institutions in international capital markets. Following Reliance Industries as only the second Indian entity to access this long-term maturity segment, EXIM Bank becomes the first financial institution from the country to successfully tap the 30-year bond market.
| Transaction Details: | Specifications |
|---|---|
| Listing Venues: | Singapore, London, India |
| Use of Proceeds: | Overseas investment loans, capital goods imports |
| Market Timing: | First major Indian debt issue of 2026 |
| Rating: | BBB- (Fitch Ratings) |
Strategic Use of Proceeds
The proceeds from the bond issue will be utilized for EXIM Bank's core mandate of supporting India's international trade. The funds will primarily finance loans for overseas investments and facilitate the import of capital goods, supporting Indian companies' global expansion and modernization efforts.
This successful issuance demonstrates the continued confidence of international investors in Indian sovereign-backed entities and opens new avenues for other domestic financial institutions seeking long-term funding in global markets.
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