New Delhi: The World Bank`s private-sector financing arm on Wednesday launched USD 2.5 billion, rupee-denominated, bonds in the Indian market to fund infrastructure projects, after raising USD 1 billion in offshore bonds for the sector last year.
The International Finance Corporation`s (IFC`s) bond programme comes at a time when both the Indian government and the Reserve Bank of India are stepping up measures to attract global investors to deepen the local bond market.
"Bonds offered under IFC`s rupee financing programme offer a safe investment alternative for domestic pension funds and other investors, while mobilising capital to address India`s infrastructure needs," said Jin-Yong Cai, IFC Executive Vice President and CEO, in a statement.
Under the programme, IFC will use a combination of rupee-denominated bonds and swaps to raise local-currency financing of up to USD 2.5 billion, or Rs 150 billion, over the next five years.
IFC`s mandate includes the development of local capital markets across the world, and the multilateral body remains committed to play a role in India`s onshore market.
Last year, IFC issued a $1 billion offshore global rupee-linked bond, to fund infrastructure projects, that attracted a broad range of international investors.
"Issuance of onshore bonds by IFC in the Indian bond market, with offer of longer-tenor bonds, will deepen the bond market," Finance Secretary Arvind Mayaram said.
IFC invested USD 1.2 billion in India during the 2013/14 fiscal year that ended in March.
As of end June 2014, the IFC`s India portfolio contained 239 projects, amounting to committed and disbursed exposure of USD 5.3 billion.