Dr. Arvind Mayaram, Secretary, Department of Economic Affairs said that we see IFC (International Finance Corporation) as an important development partner. It has been contributing significantly in financing private sector projects, including public-private partnerships, in several key developmental areas. He said that with the launch of a rupee bond in the global markets, IFC is turning a new corner. Dr Mayaram was speaking on the occasion of launch of $1 billion offshore bond program by IFC in Washington DC yesterday. This program would help in strengthening of India’s capital markets and to attract greater foreign investment in a time of renewed economic uncertainty across the world. The Secretary Dr Mayaram said that this is a new initiative for the intermediation of international savings for development in India. He further said that it will also help deepen the capital markets in India and establish an Indian rupee benchmark in the global markets"

Earlier IFC, a member of the World Bank Group, launched a $1 billion offshore bond program—the largest of its kind in the offshore rupee market—to strengthen India’s capital markets. Under the program, IFC will issue rupee-linked bonds and use the proceeds to finance private sector investment in the country.

Speaking on the occasion, Mr Jin-Yong Cai, IFC’s CEO said that vibrant domestic capital markets ensure access to long-term, local-currency finance for the private sector—the key engine of job creation in emerging markets. He said that IFC’s offshore bond program will help bring depth and diversity to the offshore rupee market and pave the way for an alternative source of funding for Indian companies.

India accounted for $4.5 billion of IFC’s committed investment portfolio as of June 30, 2013—more than any other country. In FY13, IFC invested $1.38 billion in India to achieve several strategic priorities such as promoting inclusive growth in India’s low-income states, addressing climate change, and supporting global economic integration.

Often, IFC is the first international or corporate issuer of local-currency bonds in a market. When issuing local-currency bonds, IFC works closely with regulators and market participants to refine the regulatory framework, encouraging greater participation in the local markets and providing a model for other international issuers. IFC has provided over $10 billion in local-currency financing across 58 currencies using a variety of financing tools—more than any other international finance institution.

Offshore rupee bond program strengthens India's capital markets and channels international savings into private sector rupee financing. IFC will issue rupee linked bonds under an offshore bond program and use proceeds to finance private sector investment in India, aiming to deepen capital markets, attract foreign participation, and establish an offshore rupee benchmark; IFC will coordinate with regulators and market participants to refine frameworks and provide a model for other international issuers.