The bond is IFC's first rupee issuance, and the first bond issued under its $1 billion offshore rupee bond program
IFC, a member of the World Bank Group, today issued a Rs 1,000 crore (around $160 million) global Indian rupee bond to strengthen India’s capital markets. The bond is IFC’s first rupee issuance, and the first bond issued under its $1 billion offshore rupee bond program.
IFC said that this will attract greater foreign investment in a time of renewed economic uncertainty across the world.
The three-year benchmark bond is offered and settled in US dollars. The initial subscription and the principal and coupon payments are in US dollars, with all amounts tied to the US dollar-rupee exchange rate. IFC will convert bond proceeds from dollars into rupees on the domestic spot exchange market, and use the rupees to finance private sector investment in the country.
“IFC is committed to supporting the Government of India in deepening the country’s capital markets,” commented Jingdong Hua, IFC Vice President and Treasurer in a statement. He added the IFC Global Rupee bond will help attract other foreign investors to the offshore rupee market and provide an alternative source of Rupee funding for investment in the country.
The bond was strongly oversubscribed, with orders reaching Rs 20 billion. Investors from across the globe participated in the transaction, including asset managers, insurance companies, central and private banks, corporates, pension funds, and real money investors in Asia, Europe and the US, HSBC, JP Morgan and Bank of America-Merrill Lynch acted as lead managers for the bond.
Over the years, IFC has issued bonds in 13 local currencies, including the Brazilian real, the Chinese renminbi, the Nigerian naira, and the Russian ruble. Often, IFC is the first international or corporate issuer of local-currency bonds in a market. When issuing local-currency bonds, IFC works closely with regulators and market participants to refine the regulatory framework, encouraging greater participation in the local markets and providing a model for other international issuers.
India accounted for $4.5 billion of IFC’s committed investment portfolio as of June 30, 2013—more than any other country. In FY13, IFC invested $1.38 billion in India to achieve several strategic priorities such as promoting inclusive growth in India’s low-income states, addressing climate change, and supporting global economic integration.
IFC said that this will attract greater foreign investment in a time of renewed economic uncertainty across the world.
The three-year benchmark bond is offered and settled in US dollars. The initial subscription and the principal and coupon payments are in US dollars, with all amounts tied to the US dollar-rupee exchange rate. IFC will convert bond proceeds from dollars into rupees on the domestic spot exchange market, and use the rupees to finance private sector investment in the country.
“IFC is committed to supporting the Government of India in deepening the country’s capital markets,” commented Jingdong Hua, IFC Vice President and Treasurer in a statement. He added the IFC Global Rupee bond will help attract other foreign investors to the offshore rupee market and provide an alternative source of Rupee funding for investment in the country.
The bond was strongly oversubscribed, with orders reaching Rs 20 billion. Investors from across the globe participated in the transaction, including asset managers, insurance companies, central and private banks, corporates, pension funds, and real money investors in Asia, Europe and the US, HSBC, JP Morgan and Bank of America-Merrill Lynch acted as lead managers for the bond.
Over the years, IFC has issued bonds in 13 local currencies, including the Brazilian real, the Chinese renminbi, the Nigerian naira, and the Russian ruble. Often, IFC is the first international or corporate issuer of local-currency bonds in a market. When issuing local-currency bonds, IFC works closely with regulators and market participants to refine the regulatory framework, encouraging greater participation in the local markets and providing a model for other international issuers.
India accounted for $4.5 billion of IFC’s committed investment portfolio as of June 30, 2013—more than any other country. In FY13, IFC invested $1.38 billion in India to achieve several strategic priorities such as promoting inclusive growth in India’s low-income states, addressing climate change, and supporting global economic integration.
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