Taking advantage of strong investor demand and supportive market conditions, the Asian Development Bank has raised 7 billion Indian Rupees (INR), about $104 million, from a new issue of offshore Indian Rupee-linked bonds, via a tap into the 5 year bond issued in July 2016. This represents ADB's fourth bond issue in the offshore INR-linked market, and the third issue year-to-date. 

“Today’s bond issue represents ADB's largest Indian Rupee bond issue to date,” said ADB Treasurer Pierre Van Peteghem. “By tapping into emerging local currency markets, ADB is sending a clear sign to investors of our commitment to creating liquid benchmarks in capital markets in developing Asia.”

The issue increases the outstanding deal size of the ADB 6.45% notes due August 2021 to INR 12 billion (about $179 million). The bonds were priced to yield 6.33%, a premium of 0.12% to the original issue. 

The bonds, which are denominated in Indian rupees but settled in US dollars, were underwritten by JP Morgan acting as Sole Lead Manager. 47% of the bonds were placed in Asia and 53% in Europe, Middle East, and Africa. By investor type, 44% of the bonds were placed with banks, and 56% with fund managers.

Proceeds from the bonds will be mobilized to support private sector lending in the Indian market. India is ADB’s fourth largest shareholder and is its largest borrower, excluding co-financing. In 2015, ADB approved $836 million in private sector projects in India, its largest market.