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IFC launched its first Uridishi Masala bond mobilizing $ 4.3 million

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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 IndiaIFC world Group
  • 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