IFC issues 15-Year Masala Bond for development in India
Moneylife Digital Team 17 March 2016
The 15-year, Rs200 crore Masala bonds would be listed on LSE and its proceeds would be used to advance private sector development in India, says IFC
 
IFC, a member of the World Bank Group, has issued Rs200 crore-or nearly $30 million-in 15-year Masala bonds, marking the longest-dated offshore rupee bond to be issued. The issuance will be listed on the London Stock Exchange and proceeds of the bonds will be used to advance private sector development in India.
 
In a statement, IFC says, the bonds will help deepen India's capital markets by extending the yield curve and setting a pricing benchmark for future issuances with similar maturities. IFC has previously issued Masala bonds in maturities of three, five, seven, and 10 years.
 
"Lasting prosperity depends on strong and efficient capital markets," said IFC VP and Treasurer Jingdong Hua. "With our latest Masala bond issuance, IFC has created an offshore rupee-market yield curve that stretches from three to fifteen years, deepening the market and making it more resilient. This sends a clear signal that investor demand for high-quality assets in India remains strong, despite global financial uncertainties."
 
The triple-A-rated bonds are issued under IFC's $3 billion Masala bond program. Under the program, IFC has issued bonds worth almost Rs11,000 crore, including the first green Masala bond to support climate-smart investment in India. IFC has invested proceeds of the Masala bond program in 11 private sector development projects in India.
 
IFC has also issued onshore Maharaja bonds under a $2.5 billion program for issuances in India's domestic capital markets.
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