International Finance Corporation (IFC)—a member of the World Bank group—has raised R315 crore through masala bonds for private sector investments that address climate change in India, according to a press release on the company's website.
International Finance Corporation (IFC)—a member of the World Bank group—has raised R315 crore through masala bonds for private sector investments that address climate change in India, according to a press release on the company’s website.
Masala bonds refer to bonds which are rupee-denominated and are issued in offshore markets whereas green bonds are those where the capital raised is used to fund green projects.
“The bond, listed on the London Stock Exchange, is the first green bond issued in the offshore rupee markets,” IFC said.
It also pointed out that the proceeds of the bond will be invested in a green bond issued by YES Bank. “YES Bank will invest the proceeds of its bond in renewable energy and energy efficiency projects, mainly in the solar and wind sectors,” it added.
The bond yields 6.45% per annum and is issued under IFC’s $ 3 billion offshore Rupee Masala bond program. JPMorgan was the underwriter to the issue, the release added.
It said that under the program, IFC has issued bonds worth over R10,300 crore ($1.66 billion) in a range of tenors, building a triple-A yield curve and attracting new investors to the offshore rupee markets.
IFC says as of June 2015 it had issued $3.8 billion in green bonds, including two benchmark $1 billion issuances that were, at the time, the largest such issuances in the markets; and a 500 million Renminbi-denominated green bond that was the first such issuance listed on the London Stock Exchange.