The International Finance Corporation (IFC) on 23 September 2014 raised 100 million US dollars (600 crore rupees) from international and domestic institutional investors through its first onshore rupee bond named Maharaja Bonds.
This is the first international AAA issuance in India wherein HSBC, ICICI securities, and SBI Caps are the lead- arrangers.
These bonds will be listed on the National Stock Exchange by September 2014.
Characteristic features of the Maharaja Bond
• The Maharaja Bonds were issued under the 2.5 billion US dollars programme of World Bank spread over five years.
• These bonds will help develop infrastructure for the domestic capital markets.
• These bonds offer an innovative structure to attract different types of investors to the domestic capital markets.
• There are four different tranches with different maturities under the same issuance: (i) five-year bullet bond of 25 million US dollar; (ii) ten-year bullet bond of 25 million US dollar; and (iii) two Separately Tradeable Redeemable Principal Parts (STRPPs) with maturities ranging from 13 to 20 years.
• IFC can increase the size of issuance according to its funding needs under the STRPP structure.
• The bonds proceeds issued under STRPP structure will be used for infrastructure investments in India.
On the successful completion of the 2013 global rupee bond programme of the World Bank in early 2014, IFC received a mandate to issue Maharaja Bonds, under the 2.5 billion US dollar programme, over the next five years. Under the programme, launched in 2013, IFC raised 1 billion US dollar in rupee-denominated overseas bonds from investor globally for infrastructure.
About International Finance Corporation
IFC is a member of the World Bank Group established in 1956. It is the largest global development institution focused exclusively on the private sector in developing countries.
IFC has 184 member countries. The aim of IFC is to allow the companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities.
When: 23 September 2014