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EXIM Bank to Borrow $10.5 Billion Amid Mideast Tensions
12 May
Summary
- EXIM Bank plans to raise $10.5 billion in FY27 through borrowing.
- Loan growth expected to slow to 10% due to West Asia crisis.
- Bank assesses war risks impacting its ₹3.5 trillion loan book.
The Export-Import Bank of India (EXIM Bank) is set to raise around ₹995 billion ($10.5 billion) in fiscal year 2027. This substantial borrowing will be sourced from both domestic and international markets, aiming to bolster the bank's funding capabilities. The MD noted a narrowing spread on the bank's recent bond issue, boosting confidence for foreign currency borrowing.
EXIM Bank anticipates a slower loan growth of 10% in FY27, a decrease from the previous year's 12%, attributing this moderation to the West Asia crisis. The bank is also evaluating the risks posed by ongoing conflicts, particularly concerning its exposure to the region.
Of the total planned fundraising, approximately ₹660 billion is expected from the domestic market through various instruments. The remaining $3.5 billion will be raised from overseas via bilateral and syndicated loans. The bank's current exposure to West Asia and North Africa is around ₹57 billion.
