News Column

Asian Development Bank Raises Funds Through Offshore Bonds

August 27, 2014

As a part of its $500 million offshore rupee-linked bond programme, Asian Development has raised $50 Mn (c.INR 3,000 Mn) by issuing offshore rupee linked bond.

The bonds denominated in Indian rupees carrying a coupon of 6.35% will mature in August 2016. JP Morgan was the underwriter for the maiden sale of rupee linked bonds by the Manila based lender.

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

The proceeds will be taken for financing private sector projects such as those related to infrastructure and the financial sector.

India is now ADB's fourth largest shareholder and is its largest borrower, excluding cofinancing and has approved 210 loans amounting to $31.5 Bn, $173.8 Mn for 10 grants, and $262 Mn for 348 technical assistance projects as of the end of 2013 ever since it began lending to India.

Recently, after successful offshore bond issue of $1 Bn, @IFC was planning to issue onshore bonds to raise $5 Bn over the next ten years to fund IFC's projects in India that require rupee financing.

In April IFC had completed successful issue of seven-year bonds totalling INR 12 Bn (about $ 194 million), bringing the total amount raised under its first global rupee bond programme to $ 1 Bn.

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Source: DealCurry (India)

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