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IFC Global Rupee Bond Nears $500 Million Mark, Bringing New Investors to India’s Capital Markets


In Washington, D.C.:

Alexandra Klöpfer

Phone: +1 202 473-4645

E-mail:
Aklopfer@ifc.org

In New Delhi:

Minakshi Seth

Phone: +91 11 4111 1000

E-mail:
MSeth@ifc.org


Washington, D.C./New Delhi, February 7, 2014—IFC, a member of the World Bank Group, has increased the size of its three-year global rupee bond to 30 billion rupees (close to $500 million), attracting a new wave of international investors to India’s capital markets amid renewed uncertainty in the global economy.  

The increase of 7 billion rupees, or about $112 million is the third since the bond program was launched late last year. Investors included asset managers and banks from United States and Europe. The program is designed to raise up to $1 billion to support the development of capital markets and increase foreign investment in India


“Investors continue to show strong demand for global rupee bonds, despite the volatility in emerging-market currencies and the recent interest-rate increase in India,” said Monish Mahurkar, IFC Director for Treasury Client Solutions. “IFC remains committed to supporting the momentum we see in India’s capital markets and encouraging new investors to enter the rupee markets.”


IFC global rupee bonds are denominated in Indian rupees but settled in U.S. dollars, with all principal and coupon payments made in the U.S. currency. IFC converts bond proceeds from dollars into rupees on the domestic spot exchange market, and uses the rupees to invest in the country.


Over the years, IFC has issued bonds in 14 local currencies, including the Brazilian real, the Chinese renminbi, the Nigeria naira, and the Russia ruble. IFC is often 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.


J.P. Morgan acted as lead managers for the latest issuance.


IFC Global Rupee Bond Summary Terms and Conditions

Issue amount: INR 7 billion (approximately $112 million equivalent)

Pricing date: February 6, 2014

Settlement date: February 14, 2014

Maturity date: December 3, 2016

Coupon: 7.75%

Listing: Singapore and Luxembourg


About IFC

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

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