ADB likely to raise Rs 17.6 billion
ADB is likely to soon raise Rs 1,320 cr through a bond issue and Rs 440 cr by swapping dollar for rupee from the Indian market.Updated: Apr 11, 2006 15:13 IST
Asian Development Bank is likely to soon raise Rs 1,320 crore through a bond issue and Rs 440 crore by swapping dollar for rupee from the Indian market.
"ADB plans to raise $300 million (about Rs 1,320 crore) through a rupee-denominated bond issue and $100 million (Rs 440 crore) by swapping dollars for rupee," a senior ADB official said.
The fund mobilisation in local currency is expected shortly, the official said.
This is the second time the Manila-based ADB is going for a rupee bond issue in India after it tapped the domestic market in February 2004 to partly fund lendings in India.
Under the dollar swap, the multilateral agency will bring dollars to India and swap it with banks or financial institutions to get rupee.
ADB will give rupee loan to projects in India and when the loan matures, it will return the rupee to the bank or FI and get back the dollar.
ADB is expected to go for more rupee bond issues as it aims to increase lending to projects in India, he said.
ADB is likely to lend India, the fourth largest shareholder of ADB, $2.25 billion in 2006, $2.45 billion in 2007 and $2.65 billion in 2008.
Recently, ADB had approved a $300 million loan for development of Uttaranchal power sector.
Majority part of the ADB lending in India is for the crucial infrastructure sector with focus being on three core areas transport, urban and energy.
As of December 31, 2005, ADB's cumulative lending to India amounted to $14.6 billion.
First Published: Apr 11, 2006 15:13 IST