Washington, D.C., August 3, 2015—IFC,
a member of the World Bank Group, today issued a green Masala bond, raising
3.15 billion rupees—approximately $49.2 million—for private sector investments
that address climate change in India. The bond, listed on the London Stock
Exchange, is the first green bond issued in the offshore rupee markets.
IFC will invest the proceeds of the bond in a green bond issued by Yes
Bank, one of India’s largest commercial banks. Yes Bank will invest the
proceeds of its bond in renewable energy and energy efficiency projects,
mainly in the solar and wind sectors.
“Addressing climate change is a priority for IFC in India, and the green
Masala bond demonstrates the powerful role of capital markets in mobilizing
international savings to help close the climate finance gap,” said Jingdong
Hua, IFC Vice President and Treasurer. “Adding the rupee as a new green
bond currency also supports our goals to strengthen this important asset
The bond yields 6.45% p.a. The bond is issued under IFC’s $3 billion
offshore rupee Masala bond program. Under the program, IFC has issued bonds
worth over 103 billion rupees ($1.66 billion) in a range of tenors, building
a triple-A yield curve and attracting new investors to the offshore rupee
markets. IFC has also issued onshore Maharaja bonds under a $2.5 billion
program for issuances in India’s domestic capital markets.
IFC is one of the world’s largest financiers of climate-smart projects
for developing countries, investing about $11 billion in long-term financing
over the last decade for renewable power, energy efficiency, sustainable
agriculture, green buildings and private sector adaptation to climate change.
IFC also is one of the earliest issuers of green bonds, launching a green
bond program in 2010 to help catalyze the market and unlock investment
for private sector projects that support renewable energy and energy efficiency.
As of June 2015, IFC had issued $3.8 billion in green bonds, including
two benchmark $1 billion issuances that were, at the time, the largest
such issuances in the markets; and a 500 million renminbi-denominated green
bond that was the first such issuance listed on the London Stock Exchange.
IFC Green Masala Bond Summary Terms and Conditions
Issuer: IFC (International Finance Corporation, IFC)
Amount: 3.15 billion rupees
Settlement date: August 10th, 2015
Maturity date: August 10th, 2020
Issue price: 100%
Coupon: 6.45% p.a.
Denomination: 10,000 rupees
Listing: London Stock Exchange
Underwriter: J.P. Morgan
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 about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org.