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| | Manila-based Asian Development Bank is likely to mobilise Rs 5,000 cr from the domestic market by way of rupee bonds and dollar-swap next year as part of the strategy to lend in local currency in India. "ADB is likely to raise Rs 50 bn in local currency for lending to projects in the country," a senior ADB official said. The official said part of the Rs 5,000 cr will be raised through a rupee bond issue while the rest will be mobilised through dollar swap. Under dollar swap, the multilateral agency will enter into an agreement with financial institutions, who would take dollars and give equivalent amount in rupee to ADB. After maturity of the loans, ADB will return the rupee to the FIs and get back the dollars. ADB, which came out with a rupee bond issue in India in 2004, was planning for the second bond issue in 2006. But, Finance Ministry is still in talks with Reserve Bank most probably the issue will come sometime in 2007. ADB had raised Rs 500 cr in its debut rupee bonds issue in the domestic market in February 2004. The multilateral agency is planning more bond issues in the coming years in order to step up lending activities. ADB plans to increase assistance to India from $1.2 bn in past to over $2 bn this year and $2.4 bn, 2.5 bn and 2.8 bn in the next three years. 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 infrastructure. |
