Exim Bank raises $50 million from pilot social impact bonds

In a first, the Exim Bank has raised USD 50 million in three-year bonds to investors looking to deploy resources for social impact projects.

The money will be utilised for projects in Cambodia, Myanmar and Vietnam, as this geography gives the bond its name-the Mekong Region Development Bond, an official statement said on Thursday.

The bank said this is a new fund source tapped by it and has been tapped as a pilot.

Socially responsible (SR) investing, also known as ethical and green investing, means avoiding industries that negatively affect the environment and its people, it said.

The three-year USD 50-million bond was issued at a fixed coupon of 2.385 percent with Standard Chartered Bank as the arranger, the Exim Bank said.

It also marks the first issuance in private placement format under its global medium-term note programme creating a new investor portfolio.

"The bond is exclusively placed with Dai-ichi Life Insurance Company, which is the first Japanese mutual fund company and provides insurance products and services," the bank said.

Exim Bank managing director David Rasqquinha said the fund raising reinforces the bank' commitment towards ethical and socially-conscious themes.

"With this pilot socially-responsible bond sale, Exim Bank will continue to explore opportunities under this theme to expand its investor base," he said.