IFC, a member of World Bank group has launched its first Uridishi masala bond in India to mobilize 300 million rupees from Japanese household investors to promote private sector investment in India.
- Masala bonds are rupee-denominated instruments sold only to offshore investors
- Uridishi bonds are sold to Japanese household investors
Flash points
- The three-year bond builds has raised the equivalent of $1.7 billion from international investors for investment in India
- Uridishi Masala bonds will be used to support private sector investment in India
- This will introduce a new local currency finance for businesses in India
- It will also enable the Japanese householder investors to participate in the development of Indian economy
- IFC has played a prominent role in India’s capital-markets development, rolling out a $3 billion rupee-denominated Masala bond program over the past two years
- P Morgan is the sole arranger of the bonds and Daisen Hinomaru Securities Co. Ltd is the distributor of the bonds
- India is IFC’s largest client country
- IFC’s committed portfolio in India totaled more than $5 billion as of June 30, 2015. In fiscal year 2015, IFC committed $1.4 billion in new investments
- IFC is also interested in boosting Infrastructure & logistics, financial inclusion and health care
Key points
- IFC Vice president and Treasurer- Jing dong Hua
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