IFC Issues First Green Masala Bond at 6.45% to Support Climate-Friendly Investments in India

Washington, D.C., August 3, 2015—IFC, a member of the World Bank Group, today issued a green Masala bond, raising 3.15 billion rupees—approximately $49.2 million—for private sector investments that address climate change in India. The bond, listed on the London Stock Exchange, is the first green bond issued in the offshore rupee markets.

IFC will invest the proceeds of the bond in a green bond issued by Yes Bank, one of India’s largest commercial banks. Yes Bank will invest the proceeds of its bond in renewable energy and energy efficiency projects, mainly in the solar and wind sectors.

“Addressing climate change is a priority for IFC in India, and the green Masala bond demonstrates the powerful role of capital markets in mobilizing international savings to help close the climate finance gap,” said Jingdong Hua, IFC Vice President and Treasurer. “Adding the rupee as a new green bond currency also supports our goals to strengthen this important asset class.”

The bond yields 6.45% p.a. The bond is issued under IFC’s $3 billion offshore rupee Masala bond program. Under the program, IFC has issued bonds worth over 103 billion rupees ($1.66 billion) in a range of tenors, building a triple-A yield curve and attracting new investors to the offshore rupee markets. IFC has also issued onshore Maharaja bonds under a $2.5 billion program for issuances in India’s domestic capital markets.

IFC Green Masala Bond Summary Terms and Conditions

Issuer: IFC (International Finance Corporation, IFC)
Amount: 3.15 billion rupees
Settlement date: August 10th, 2015
Maturity date: August 10th, 2020
Issue price: 100%
Coupon: 6.45% p.a.
Denomination: 10,000 rupees
Listing: London Stock Exchange
Underwriter: J.P. Morgan
See detailed press release here

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