New Delhi, August 20, 2014—IFC,
a member of the World Bank Group, today launched a $2.5 billion rupee financing
program to strengthen capital markets and support infrastructure development
Under the program, IFC will use a combination of rupee-denominated bonds
and swaps to raise local-currency financing of up to $2.5 billion, or INR
15,000 crore over the next five years. Proceeds from the program will be
used for infrastructure investments in India.
“Vibrant capital markets provide critical access to finance for the private
sector,” said IFC Executive Vice President and CEO Jin-Yong Cai. “Bonds
offered under IFC’s rupee financing program offer a safe investment alternative
for domestic pension funds and other investors, while mobilizing capital
to address India’s infrastructure needs.”
Deep, liquid domestic capital markets ensure access to long-term, local-currency
finance for the private sector—the key engine of job creation in emerging
markets. They mobilize long-term funding for priority sectors such as infrastructure.
“The onshore bond program marks another important milestone in the engagement
between India and IFC. Issuance of onshore bonds by IFC in the Indian bond
market, with offer of longer tenor bonds, will deepen the bond market and
also provide much needed finance to infrastructure projects,” said Dr.
Arvind Mayaram, Finance Secretary and Secretary, Department of Economic
Affairs, India’s Ministry of Finance.
Last year, IFC issued a $1 billion offshore global bond program linked
to the rupee exchange rate. Under the program, IFC offered six separate
issuances between November 2013 and April 2014; four with maturities of
three years, one of five years, and the final tranche of seven years. This
set a benchmark for different tenors in the markets and extended the offshore
rupee yield curve from less than three years to seven. The bonds attracted
a broad range of international investors.
In FY14, IFC invested $1.2 billion in India to achieve strategic priorities
of providing counter-cyclical support to infrastructure, promoting financial
inclusion and enhancing access to quality and affordable healthcare to
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