"The Asian Development Bank (ADB) has raised Rs 5 billion (about USD 74 million) from its issuance of 5-year offshore Indian rupee (INR) linked bonds, " it said in a release today.
This was, ADB said, its third bond issue in the offshore rupee-linked market, and the second such issue this year.
"The strength of the Indian economy has led to increasing demand from international investors for Indian rupee-linked bonds," said ADB Treasurer Pierre van Peteghem.
Also, ADB said plans to raise around USD 20 billion from the capital markets in 2016.
Also Read
The proceeds from the bonds to support private sector lending in the Indian market. India is ADB's fourth largest shareholder and is its largest borrower, excluding co-financing.
In 2015, ADB approved USD 836 million in private sector projects in India, its largest market.
The bonds, which are denominated in Indian rupees but settled in US dollars, carry a coupon of 6.45 per cent and will mature on 8 August 2021.
It said 31 per cent of the bonds were placed in Asia and 69 per cent in Europe, the Middle East, and Africa. By investor type, 70 per cent of the bonds were placed with banks, and 30 per cent with fund managers.
ADB is a regular borrower in the mainstream international bond markets but has also led issuance in developing Asian countries as part of efforts to promote domestic bond markets as an alternative to bank lending.
Manila-headquartered ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
In 2015, ADB assistance totalled USD 27.2 billion, including co-financing of USD 10.7 billion.