New Delhi, June 6 (PTI): Exim Bank will raise over Rs 1,300 crore through its euro bond issue as part of its Rs 7,000-crore borrowing programme for this financial year.

“We are planning to raise $300 million (Rs 1,300 crore) through euro bonds in this financial year. The bonds will be issued when markets are favourable,” Exim Bank chairman T. C. Venkat Subramanian said.

The Reserve Bank of India has already approved Exim Bank’s proposal for raising external commercial borrowing worth $300 million from the overseas markets, the chairman said.

This is the first time Exim Bank is tapping the international bond market.

The proposed euro bonds also assume significance in the wake of the dollar’s weakness against the rupee and other major currencies.

Last fiscal, Exim Bank had raised about $355 million in syndicated loans, bi-lateral and club deals with international banks, Subramanian said.

The bank has so far raised $1.2 billion in debt with maturity period ranging from one to 20 years. At present, foreign currency loans provided by Exim Bank amount to 46 per cent of its total loan portfolio.

Apart from the debt issues, Exim Bank expects Rs 200 crore capital infusion from the government this fiscal to increase its capital base to Rs 850 crore by March 31, 2005, he said.