IFC raises Rs 1,000 crore via Masala Bonds

MUMBAI: International Finance Corporation (IFC), the private sector investment arm of the World Bank, has raised Rs 1,000 crore by selling rupee-denominated overseas bonds, named Masala Bonds, with 10-year maturity to support infrastructure development in India.

These securities, the first rupee bonds to be listed on the London Stock Exchange, will yield 6.3%. JP Morgan was the sole arranger for the issue. The proceeds from the sale will be reinvested in Axis Bank’s forthcoming infrastructure bond issue in India. The bonds were issued under IFC's $2 billion offshore rupee programme. Tarun Bajaj, joint secretary at the Department of Economic Affairs, said: “The IFC Masala Bonds set a triple-A benchmark for offshore rupee issuances and pave the way for more foreign investment to help meet India's private sector development needs.”