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IFC raises $100M in maiden onshore Maharaja Bonds

International Finance Corporation today said it has completed its maiden onshore rupee bonds, the Maharaja Bonds, worth nearly USD 100 million from global and domestic institutional investors.

The IFC Maharaja Bonds, will be listed on the National Stock Exchange by this week, said the World Bank arm and NSE.

IFC, which raised over USD 1 billion in rupee-denominated overseas bonds last fiscal, has received a mandate to raise up to USD 2.5 billion more over the next five years, IFC global treasury head for client solutions Keshav Gaur told reporters.

"The Maharaja Bonds are issued under the USD 2.5-billion programme to help develop infrastructure for the domestic capital markets. The issuance follows IFC's successful completion earlier this year of a global rupee bond programme which raised USD 1 billion from investors globally," Gaur said.

The bond offers an innovative structure to attract different types of investors to the domestic capital markets.

There are four tranches with different maturities under this programme. The issue comprises a 5-year bullet bond of USD 25 million, a 10-year bullet bond of USD 25 million and two separately tradable redeemable principal parts (STRPP) with maturity of between 13 and 20 years, he said.

The bond proceeds will be used for market infra investment here. This is the first international AAA issuance in the country. HSBC, ICICI securities and SBI Caps are the lead- arrangers to the issue, Gaur said.

"With these Maharaja Bonds, we are creating value for investors," IFC South Asia regional director Serge Devieux said. .

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