Asian Development Bank may look at fresh issuance of rupee-denominated bonds

ADB president Masatsugu Asakawa on May 2 said the bank will explore the option of raising resources via rupee-denominated bonds.

ADB president Masatsugu Asakawa on May 2 said the bank will explore the option of raising resources via rupee-denominated bonds.

Raising funds in local currency reduces forex volatility, he said here.

"We are encouraged to increase our local currency financing to avoid any kind of foreign exchange risk," he said.

The decision will be based on market condition, demand and supply, he added.

In the past, the multilateral funding agency Asian Development Bank (ADB) raised funds in rupee-denominated bonds to finance projects in the country.

In January 2021, the ADB listed 10-year masala bonds or Rupee denominated bonds, worth ₹300 crore on global securities market platform of India INX, the international exchange located at International Financial Services Center- Gift City in Gujarat.

Prior to this, the ADB raised ₹850 crore, about $118 million, from a new issue of offshore Indian rupee-linked 10-year bonds.