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Our Banking Bureau
Mumbai, Dec 1: Export-Import Bank of India is privately placing a 10-year 13.5 paper for an amount of Rs 200 crore. The issue -- with put and call options at the end of five and seven years -- carries a greenshoe option for another Rs 200 crore.
This is the second private placement in the history of Exim Bank which raised Rs 200 crore in January 1996 through this route.
With a 13.5 per cent coupon (payable yearly), the bond offers 0.9 per cent upfront discount to the face value. The yield to maturity (YTM) thus works out to 13.76 per cent annually.
The issue, which has been assigned a triple-A (AAA) rating by Crisil and LAAA rating by Icra, will open on December 2 and close on December 21. The long-term paper targets mutual funds, banks and financial institutions and superannuation and gratuity funds. The paper is an approved security under the Indian Trust Act, 1882.
An Exim Bank release on Tuesday said the issue proceeds will be used to expand the bank's operations. "The bank's current vision is tohelp externally oriented companies to globalise their business by offering them a comprehensive range of financing and services aimed at promoting exports, two-way investment flows, technology and quality upgradation," the release said.
Exim Bank had seen a 9 per cent rise in its advances portfolio which jumped to Rs 1,370 crore in 1997-98. The loan outstanding in March 1998 stood Rs 3917 crore and the net worth Rs 1207 crore in fiscal 1998. The bank registered a net profit of Rs 201.7 crore in 1997-98, up from Rs 151.6 crore in the previous year.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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