Rama Krishna Vadlamudi, HYDERABAD 21 November 2013
On November 19, 2013, IFC issued the first tranche of USD 160 million or INR 10 billion under its USD 1 billion Global Rupee Bond Program. The issue received very good response from global investors and subscribed two times, the details of which are given in the above template. The investors are from the US, Europe and Asia. They include fund managers, central and private banks. The coupon for the bonds is 7.75 percent, which is 70 basis points or 0.70 percent below the prevailing 3-year Indian government bond yield.
The bond is International Finance Corporation’s first rupee issuance, and the first bond issued under its USD 1 billion offshore rupee bond program. IFC, which focuses exclusively on the private sector, is an arm of the Washington, DC- based World Bank Group. The success of this IFC’s offshore rupee bond issue indicates the attractiveness of India for global investors—reflecting investor confidence.