IFC raises Rs 600cr via bonds - Calcutta Telegraph

Mumbai, Sept. 23: International Finance Corporation (IFC), an arm of the World Bank, has raised Rs 600 crore ($100 million) through the issue of the first tranche of its onshore rupee-linked bonds, which will be listed on the National Stock Exchange (NSE).

Called the IFC Maharaja Bonds, the issue is part of a programme to support the country’s capital markets and provide funding for various infrastructure projects.

IFC, which has approvals to raise up to $2.5 billion over the next five years, is likely to come out with similar issues when projects need funds.

This is the first time in 10 years that a foreign institution is raising money through a bond sale after the Asian Development Bank (ADB).

IFC had earlier this year successfully completed an offshore bond programme, which raised $1 billion from investors globally.

IFC global treasury head for client solutions Keshav Gaur said the onshore bond was largely subscribed by domestic and foreign institutional investors. He said the financial institution was not targeting retail investors at present. The IFC Maharaja Bonds will be listed on the NSE by this week.

IFC said it offered an innovative structure to attract different types of investors. There are four tranches with different maturities under this programme. The issue comprises a five-year bond of $25 million, a 10-year bond of $25 million and two other parts that include callable bonds with maturity of between 13 years and 20 years.

“With these Maharaja Bonds, we are creating value for investors,” IFC South Asia regional director Serge Devieux said. He added that the bonds witnessed good response from investors, with the five-year bond being subscribed two times and the 10-year issue witnessing subscriptions of 1.3 times.

IFC, which hopes that its bond will be able to create a benchmark for other AAA issuers, was also able to raise the money at an attractive price.