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IFC, a member of the World Bank Group, has increased an outstanding three-year global Indian rupee bond by Rs 300 crore (approximately $50 million) to promote capital market development and encourage foreign investment in India.
This is the second increase to the IFC global rupee bond, issued in November 2013 under the $1 billion IFC global rupee bond programme. It brings the outstanding amount of the bond to Rs 2,300 crore.
Investors included asset managers and insurance companies in the U.S and Europe.
IFC global rupee bonds are denominated in Indian rupee but settled in US dollars, with all principal and coupon payments tied to the US dollar-rupee exchange rate.
IFC converts bond proceeds from dollars into rupees on the domestic spot exchange market, and uses the rupees to invest in the country.
Over the years, IFC has issued bonds in 14 local currencies, including the Brazilian real, the Chinese renminbi, the Nigeria naira, and the Russia ruble.
India accounted for $4.5 billion of IFC’s committed investment portfolio as of June 30, 2013—more than any other country.
