Washington, D.C./New Delhi, November 20, 2013
—
IFC, a member of the World Bank Group, today issued an Indian rupees 10 billion (approximately $160 million) global Indian rupee bond to strengthen India’s capital markets and attract greater foreign investment in a time of renewed economic uncertainty across the world. The bond is IFC’s first rupee issuance, and the first bond issued under its $1 billion offshore rupee bond program.
The three-year benchmark bond is offered and settled in US dollars. The initial subscription and principal and coupon payments are in US dollars, with all amounts tied to the US dollar-rupee exchange rate. IFC will convert bond proceeds from dollars into rupees on the domestic spot exchange market, and use the rupees to finance private sector investment in the country.
“IFC is committed to supporting the government of India in deepening the country’s capital markets,” said Jingdong Hua, IFC Vice President and Treasurer. “The IFC Global Rupee Bond will help attract other foreign investors to the offshore rupee market and provide an alternative source of rupee funding for investment in the country.”
The bond was strongly oversubscribed, with orders reaching Indian rupees 20 billion. Investors from across the globe participated in the transaction, including asset managers, insurance companies, central and private banks, corporations, pension funds, and real money investors in Asia, Europe, and the United States. HSBC, JP Morgan, and Bank of America-Merrill Lynch acted as lead managers for the bond.
Over the years, IFC has issued bonds in 13 local currencies, including the Brazilian real, the Chinese renminbi, the Nigeria naira, and the Russia ruble. Often, IFC is the first international or corporate issuer of local-currency bonds in a market. When issuing local-currency bonds, IFC works closely with regulators and market participants to refine the regulatory framework, encourage greater participation in local markets, and provide a model for other international issuers.
India accounted for $4.5 billion of IFC’s committed investment portfolio as of June 30, 2013—more than any other country. In FY13, IFC invested $1.38 billion in India to achieve several strategic priorities such as promoting inclusive growth in India’s low-income states, addressing climate change, and supporting global economic integration.
IFC Global Rupee Bond Summary Terms and Conditions:
Issue amount: Indian rupees 10 billion
Pricing date: November 19, 2013
Settlement date: November 26, 2013
Maturity date: December 3, 2016
Coupon: 7.75%
Listing: Luxembourg, Singapore
IFC Global Rupee Bond Distribution by Region
United States: 74.8%
Asia: 19.1%
Europe: 6.1%
IFC Global Rupee Bond Distribution by Investor Type
Fund Managers: 70.2%
Central Banks/ Official Institutions: 17.0%
Banks/ PB: 12.8%
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 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 world’s most pressing development challenges. For more information, visit
www.ifc.org
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