In a move to facilitate investments in India and to ease pressure on the rupee,International Finance Corporation (IFC),the investment arm of the World Bank,has announced a $1 billion rupee bond issue in the offshore markets.
The bond issue announced in Washington DC is the largest such issue in the offshore rupee market,a finance ministry statement said on Thursday.
The move may boost demand for the rupee in offshore markets,give an international tag to the currency and have a favourable effect on the domestic exchange rate.
IFC has already raised local currency bonds in Chinese renminbi,Russian Ruble and Brazilian Real.
The proposed IFC bond issue will finance private sector projects,including public-private partnerships.
The issue will boost Indian markets and help attract more foreign investment,the release said quoting economic affairs secretary Arvind Mayaram.