Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Exim Bank to launch $500 million bond guarantee programme

Date: 08-08-2012
Subject: Exim Bank to launch $500 million bond guarantee programme

Mumbai: The Export Import Bank of India (Exim Bank) Tuesday said it would launch a USD 500 million bond guarantee programme to enhance credit availability to domestic companies wanting to sell their bonds in international markets.

The facility, -- Bond Guarantee Facility Programme -- to be launched in association with IL&FS Financial Services (IFIN), will be used in internationally-accepted currencies other than the US dollar, the euro and the yen, Exim Bank said in a statement.

The facility is the result of an agreement signed between Exim Bank and IFIN to help domestic companies access the offshore yuan and other international bond markets which are not denominated in the dollar, the euro and the yen, it said.

Exim Bank had last week raised USD 500 million through an international bond sale at an interest rate 4 per cent over the US treasury, making it the cheapest ever money raised by a domestic company in the five-year tenor bracket.

"The bond guarantee facility programme will provide a credit enhancement facility to domestic bond issuers in global markets in internationally-accepted currencies other than these above-listed three currencies," the statement said.

The total commitments of the programme are targeted at USD 500 million and the quantum of commitment by Exim Bank and other banks would be decided on a case to case basis, it said.

The statement further said the two parties--Exim Bank and IFIN--have already worked on an overseas yuan issue this April during the bond sale by the Singapore subsidiary of IL&FS Transportation Networks.

Source : zeenews.india.com