ADB raises Rs 500 cr in rupee-linked bonds

Multilateral funding agency Asian Development Bank (ADB) has raised Rs 5 billion, or around Rs 500 crore, by issuing five-year offshore Indian rupee-linked bonds. The bonds, which are denominated in Indian rupees but settled in US dollars, carry a coupon of 6.45 per cent and will mature on 8 August 2021.

India’s Position:

• India is ADB’s fourth largest shareholder and is its largest borrower, excluding co-financing.
• In 2015, ADB approved USD 836 million in private sector projects in India, its largest market.
• The strength of the Indian economy has led to increasing demand from international investors for Indian rupee-linked bonds.

Asian Development Bank:

• ADB is a regular borrower in the mainstream international bond markets but has also led issuance in developing Asian countries as part of efforts to promote domestic bond markets as an alternative to bank lending.
• Manila-headquartered ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
• The funding agency is owned by 67 members-48 from the region.