World Bank's private lending arm International Finance Corp on Thursday raised $194 million through a 7-year rupee bond overseas in the final tranche of the $1-billion programme started in October last year.
The IFC rupee bond offering is the longest-dated issue to date in the offshore markets and was 140% oversubscribed. The bonds were raised at a yield of 8.25%.
“The very strong market response to IFC’s first global rupee bond programme highlights the growing confidence of international investors in India’s economy,” said IFC CEO Jin-Yong Cai. “By offering a range of tenors under the programme, we were able to attract a broad range of investors from around the world.”
IFC global rupee bonds are denominated in Indian rupees but settled in US dollars with all principal and coupon payments tied to the dollar-rupee exchange rate.