Livemint: August, 2014
Mumbai: International Finance Corporation (IFC), an arm of the World Bank, said on Wednesday that it will raise Rs.15,000 crore over the next five years from the local markets to invest in Indian infrastructure.
The proceeds, roughly amounting to $2.5 billion, will be raised using a combination of rupee-denominated bonds and swaps, IFC said in a statement.
“Bonds offered under IFC’s rupee financing programme offer a safe investment alternative for domestic pension funds and other investors, while mobilizing capital to address India’s infrastructure needs,” said IFC executive vice-president and chief executive officer Jin-Yong Cai.
“Issuance of onshore bonds by IFC in the Indian bond market, with offer of longer tenor bonds, will deepen the bond market and also provide much needed finance to infrastructure projects,” said Arvind Mayaram, the federal finance secretary.
Last year, IFC completed a $1 billion offshore global bond program linked to the rupee exchange rate. IFC issued bonds in six tranches between November 2013 and April 2014—four with maturities of three years, one of five years, and a final one of seven years.
In fiscal 2014, IFC invested $1.2 billion in India.