Washington, October 9, 2013—IFC,
a member of the World Bank Group, has launched a $1 billion offshore bond
program—the largest of its kind in the offshore rupee market—to strengthen
India’s capital markets and attract greater foreign investment in a time
of renewed economic uncertainty across the world.
Under the program, IFC will issue
rupee-linked bonds and use the proceeds to finance private sector investment
in the country.
“Vibrant domestic capital markets
ensure access to long-term, local-currency finance for the private sector—the
key engine of job creation in emerging markets,” said Jin-Yong Cai, IFC’s
CEO. “IFC’s offshore bond program will help bring depth and diversity
to the offshore rupee market and pave the way for an alternative source
of funding for Indian companies.”
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
Arvind Mayaram, Secretary of
Economic Affairs in India’s Ministry of Finance, said: “We see IFC as
an important development partner. It has been contributing significantly
in financing private sector projects, including public-private partnerships,
in several key developmental areas. With the launch of a rupee bond in
the global markets, IFC is turning a new corner. This is a new initiative
for the intermediation of international savings for development in India.
It will also help deepen the capital markets in India and establish an
Indian rupee benchmark in the global markets"
Over the years, IFC has issued
bonds in 13 local currencies, including the Brazilian real, the Chinese
renminbi, the Nigeria naira, and the Russia 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
IFC has provided over $10 billion
in local-currency financing across 58 currencies using a variety of financing
tools—more than any other international finance institution.
IFC, a member of the World Bank
Group, is the largest global development institution focused exclusively
on the private sector. Working with private enterprises in more than 100
countries, we use our capital, expertise, and influence to help eliminate
extreme poverty and promote shared prosperity. In FY13, our investments
climbed to an all-time high of nearly $25 billion, leveraging the power
of the private sector to create jobs and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org