Washington, D.C., April 22, 2015—IFC,
a member of the World Bank Group, issued Masala bonds worth 16 billion
Indian rupees, or approximately $250 million, attracting first time investors
from Europe to the offshore rupee markets.
The three-and-a-half year bonds mark the first issuance at this tenor in
the offshore rupee markets. They build on previous IFC Masala bond issuances
of three, five, seven and ten-year maturities, adding further depth to
the offshore rupee yield curve for triple-A issuers. The bonds yield 6.45%.
“This is a historic time for India’s capital markets, and we anticipate
even greater momentum following the Reserve Bank of India’s approval for
Indian corporates to issue Masala debt,” said IFC Vice President and Treasurer
Jingdong Hua. “Just today Indian Railways Finance Corporation said it
plans to raise $1 billion in the offshore rupee markets. IFC stands ready
to support first-time Masala bond issuers.”
In response to strong investor demand, IFC increased the bond from 10 billion
rupees to 16 billion rupees. The overwhelming majority of investors are
asset managers in Europe and North America. The bond brings IFC’s overall
Masala bond issuances to 99 billion rupees, or approximately $1.6 billion
IFC has also issued in the onshore rupee markets, raising 6 billion rupees
in Maharaja bonds.
The IFC Masala bonds are listed on the London Stock Exchange. Proceeds
of the bonds will support private sector investment in India.
IFC Masala bond summary terms and conditions
Issue amount: INR 16 billion
Pricing Date: April 23, 2015
Settlement Date: April 30, 2015
Maturity Date: October 30, 2018
IFC Masala bond investor distribution by type
Banks/Financial Institutions 13%
Fund Managers 78%
Pension Funds/Insurance 9%
IFC Masala bond investor distribution by region
North America 44%
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.