IFC, a member of the World Bank Group, today issued a five-year, 20 billion global rupee bond (approximately $328 million) with a yield of 7.8 per cent to promote capital market development and encourage foreign investment in India.
This is the largest offshore Indian rupee bond issuance to date, a press release from the insittution said.
The order book reached close to Rs 2,500 crore. Over two-thirds of the IFC bond buyers are US and European asset managers, insurance companies and private banks.
So far nearly $815 million has been raised under IFC’s $1 billion global rupee bond programme, launched late last year. IFC global rupee bonds are denominated in Indian rupees but settled in US dollars, with all principal and coupon payments tied to the US dollar-rupee exchange rate.
IFC converts bond proceeds from dollars into rupees on the domestic spot exchange market, and uses the rupees to invest in the country.
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