Washington: The International Finance Corporation (IFC) on Friday successfully issued seven-year bonds totalling 1,200 crore (about $194 million), bringing the total amount raised under its first global rupee bond programme to $1 billion.
Considered one of the steps towards internationalisation of the Indian currency, the programme was launched to strengthen India's capital markets and attract greater foreign investment.
The seven-year IFC bond offering is the longest-dated issue to date in the offshore rupee markets. It was oversubscribed by 140 per cent, the IFC said.
Noting that most of the investors were from outside Asia, the IFC, a member of the World Bank, said the bond yields 8.25 per cent return.
Under its global rupee bond programme, IFC has also issued three-year bonds totalling 3,000 crore and five-year bonds totalling 2,000 crore.
“The very strong market response to IFC's first global rupee bond programme highlights the growing confidence of international investors in India's economy,” IFC EVP and CEO Jin-Yong Cai said in a statement.
“By offering a range of tenors under the programme, we were able to attract a broad range of investors from around the world, bringing depth and diversity to the offshore rupee market,” he added.
Economic Affairs Secretary Arvind Mayaram said with the global rupee bond programme, IFC made an important contribution to the development of India's capital markets, attracting foreign investment at this important juncture.
This also established an Indian rupee benchmark in the global markets, he said.