India's EXIM Bank To Raise $300 Million Through Dollar Bonds Under RBI Hedging Scheme

The Export-Import Bank of India (EXIM Bank) is preparing to raise $300 million from overseas markets through a dollar bond issue, according to bankers familiar with the development. The proposed fundraising will be carried out under the Reserve Bank of India's (RBI) recently introduced subsidised hedging facility, which is designed to make foreign borrowings more cost-effective.

If completed, the issue will add EXIM Bank to the growing list of institutions tapping the RBI-backed mechanism for overseas funding.

Three-Year Dollar Bonds Planned

According to bankers, EXIM Bank intends to issue three-year floating-rate dollar bonds.

The bonds are expected to be priced at 90 basis points above the Secured Overnight Financing Rate (SOFR). People aware of the transaction said the fundraising exercise is aimed at accessing overseas capital while benefiting from the RBI's hedging support.

EXIM Bank has not commented on the proposed bond sale.

RBI Facility Drives Overseas Borrowing

The RBI introduced the special hedging window in June to encourage banks and government-backed institutions to raise funds from international markets.

The facility allows eligible borrowers to manage foreign exchange risk at a lower cost, making external commercial borrowings more attractive while supporting the rupee.

Since the scheme was announced, several financial institutions have already accessed overseas debt markets.

More Institutions Tap Global Markets

Earlier reports had indicated that three RBI-regulated development finance institutions were each evaluating overseas borrowings of around $500 million.

EXIM Bank's planned issue follows fundraising by Power Finance Corporation (PFC), HDFC Bank and Axis Bank, which together have raised nearly $2.15 billion through dollar bond issuances after the RBI launched the facility.

Market participants expect the trend to continue in the coming months as institutions look to secure overseas funding under this favourable framework.

Second Dollar Bond Issue This Year

If the transaction goes ahead, it will mark EXIM Bank's second dollar-denominated bond issuance in 2026.

Earlier this year, the institution raised $500 million through 10-year bonds carrying a 5% coupon, priced at a spread of 85 basis points over US Treasuries.

It also issued 30-year dollar bonds worth $500 million at a 5.75% coupon, with a spread of 95 basis points over comparable US Treasury securities.

Analysts expect more overseas bond issuances from banks and state-owned institutions before the end of September as borrowers seek to take advantage of the RBI's subsidised hedging facility while funding costs remain favourable.

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