Washington, D.C., November
a member of the World Bank, issued a 10-year, 10 billion Indian rupee bond
(equivalent to $163 million) to increase foreign investment in India, mobilizing
international capital markets to support infrastructure development in
mark the first rupee bonds
listed on the London Stock Exchange. They are the longest-dated bonds in
the offshore rupee markets, building on earlier offshore rupee issuances
by IFC at three-, five-, and seven-year maturities. Proceeds from the offering
will support a forthcoming infrastructure bond issuance by Axis Bank.
Tarun Bajaj, Joint Secretary, Department of Economic Affairs,
is a key development partner as we continue to focus on deepening the capital
markets. The IFC Masala bonds set a triple-A benchmark for offshore rupee
issuances and pave the way for more foreign investment to help meet India’s
private sector development needs."
George Osborne, Chancellor of the Exchequer, said: “Increasing
our links with India has been a personal priority for me which is why I
went to see Prime Minister Modi earlier this year to promote our economic
relations and gave my backing to the new Gandhi statue in parliament square.
If we can create these strong financial links between our two countries
as well, then the ties will be deeper still which is why I have been personally
pushing for rupee bonds to be issued in the UK markets and I am delighted
this is now going ahead.”
Jin-Yong Cai, IFC Executive Vice President and CEO, said: “This
bond issue demonstrates the powerful role that capital markets can play
in linking international savings to infrastructure investment. The strong
demand from investors signals continued momentum for the Indian economy.”
The bonds were issued under IFC’s
$2 billion offshore rupee program. The bonds yield 6.3 percent. J.P. Morgan
is the sole arranger for the bond.
IFC issued the bonds in London to leverage the city’s
standing as a premier financial center. The vast majority of investors
are European insurance companies.
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
most pressing development challenges. For more information, visit