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IFC Launches 16 Billion Indian Rupee Masala Bond, Reaching 99 Billion Rupee in Offshore Issuances


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., 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 dollars.


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

Coupon: 6.45%

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%

Asia        7%

Europe        49%


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 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.

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