International Finance Corporation (IFC) has increased to size of its three year global rupee bond to Rs 3,000 crore (USD 500 million) to attract more investors.
"The increase of Rs 700 crore, or about USD 112 million is the third since the bond program was launched late last year," the IFC statement said, adding, that the size of the bond will now be Rs 3,000 crore.
The Rs 700 crore bond would have a coupon rate of 7.75 per cent and will mature on December 3, 2016.
The increase in the size, it said, will help in attracting a new wave of international investors to India's capital markets amid renewed uncertainty in the global economy.
"Investors continue to show strong demand for global rupee bonds, despite the volatility in emerging-market currencies and the recent interest-rate increase in India," IFC Director (Treasury Client Solutions) Monish Mahurkar said.
IFC global rupee bonds are denominated in Indian rupees but settled in US dollars, with all principal and coupon payments made in the US currency. IFC converts bond proceeds from dollars into rupees on the domestic spot exchange market, and uses the rupees to invest in the country.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, the institution uses its capital, expertise, and influence to help eliminate poverty.
