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India,Philippines : ADB raises Rs 3 billion from its offshore INDIAN rupee-linked bonds

August 25, 2014

The Asian Development Bank (ADB) raised Rs 3 billion from its issuance of offshore Indian rupee-linked bonds.

This issuance is the first bond issued under ADB s $500 million offshore rupee-linked bond program and aims to deepen India s capital markets.

There is demand for bonds linked to the Indian economy and the reception to ADB s inaugural rupee-linked bond is reflective of this. ADB is committed to supporting development and poverty reduction through financing private sector projects as related to infrastructure and the financial sector and developing India s capital markets.

The bonds are denominated in Indian rupees but settled in US dollars, with a coupon of 6.35% and will mature on 17 August 2016. The bond was led by JP Morgan.

13% of the bonds were placed in Asia; 42% in Europe, Middle East, and Africa; and 46% in the Americas. By investor type, 10% of the bonds went to central banks, 39% to banks, and 51% to fund managers.

India is now ADB s 4th largest shareholder and is its largest borrower, excluding co-financing.

Energy, and transport and information and communications technologies were the key sectors for assistance.

ADB plans to raise $12 billion to $13 billion from the bond markets in 2014.

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Source: TendersInfo (India)

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