IFC mulls over second rupee bond sale
Washington D.C.-based International Finance Corporation (IFC) is planning a second tranche of rupee-denominated bond program. IFC is mulling over the possible deal following the encouraging response it got for its first-ever overseas rupee-bond sale. IFC is the investment arm of the World Bank Group.
Economic Times, citing a statement by IFC, said the benchmark issue size this time could be smaller and the pricing more attractive. This would add liquidity to the existing bond, IFC said. IFC also urges its peers like the Asian Development Bank and other multinational companies to explore this option.
The report said the Indian government has been trying to put the rupee on international markets and been preparing to lobby with major trading partners to accept rupee payments for some exports. Recently, the IFC had raise INR1,000 crore through an issue of offshore rupee-bonds at a coupon of 7.75% for three years. It has received an order book of INR2,000 crore, Economic Times said.
IFC is still in the process of identifying prospective projects. It is looking to invest in housing, manufacturing, renewable energy, agriculture, transport and infrastructure sectors, the report said.