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ADB secures Rs 8.5 billion through offshore India rupee-linked bonds

The Philippines-based Asian Development Bank (ADB) on Tuesday said that “It has secured Rs 8.5 billion (approx $118 million), form a new issue of offshore India rupee-linked 10-year bonds.”

In a statement issued, ADB said, “This is the first new maturity raised in Indian rupees since 2017, and contributes to an established yield curve that stretches from 2021 through 2030 with Rs 72.4 billion ($1 billion) of outstanding bonds.”

Speaking on the bond issue, ADB Treasurer Pierre Van Peteghem, said, “ADB’s Indian rupee bonds have been a game-changer for local currency operations. Through issues like this, ADB contributes to capital market development, attracts foreign portfolio investment and catalyzes the financing of new ADB loans and investments in Indian rupees.”

“We are also supporting the development of financial market infrastructure by listing the bonds on India International Exchange,” Pierre added.

Commenting on the benchmark, the bank said, “The benchmark for the new issue is set at 10-years offshore INR market, with the bonds bearing a semi-annual coupon of 6.15% and priced to yield 6.19%.”

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“The bond, denominated in Indian rupees but settled in US dollars, was underwritten by JP Morgon, and primarily distributed to investors in the Americas (21%), and Europe (79%). By investor type 28% of the bonds were placed with banks and 72% with fund managers,” the bank said.

“The bank will dual list its bonds on the Global Securities Market of India International Exchange at GIFT IFSC and Luxembourg Stock Exchange,” the bank added.

Earlier in 2019, the Asian Development Bank issued the local currency bonds in Georgian lari, Indian rupee, Indonesian rupiah, Kazakhstan tenge, and Philippine peso.

Speaking on the listing, Mr. V. Balasubramaniam, CEO & MD, India INX, said, “This is the first time a foreign issuer is going a primary listing with India International Exchange and we are excited to welcome Asian Development Bank as a marquee issue on our platform.”

Further adding to the statement bank said, “ADB is a regular borrower in the mainstream international bond markets but has also let issuance in developing Asian countries as part of efforts to promote local currency bond markets as an alternative to lending.”

“ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty,” it added.

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