MUMBAI (Reuters) - International Finance Corp. (IFC), a part of the World Bank group, has issued a second tranche of 10 billion rupees in three-year bonds at 7.75 percent, citing strong investor interest for rupee exposure.
The sale doubles the issue size from its November bond issue of $160 million and is seen as a significant step towards liberalisation of the partially-convertible rupee.
The sale, which is part of IFC's $1 billion of rupee bond programme, saw strong investor interest from the developed economies with investors from the United States lapping 60 percent of the issue and European investors cornering 26 percent, IFC said in a press release on Wednesday.
"The strong market reception for the second IFC global rupee bond signals continued investor interest to rupee exposure," said Monish Mahurkar, IFC's Director for Treasury Client Solutions.
The coupon and settlement of the bonds will be in dollars but the proceeds will be converted into rupees and invested in the country, the release said.
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JP Morgan and TD Securities were the lead managers for the transaction.
(1 = 61.5750 Indian rupees)
(Reporting by Archana Narayanan; Editing by Sunil Nair)
