ADB gets RBI, MoF nod to float Re bond

Asian Development Bank (ADB) is all set to enter the Indian capital market with a bond issue to raise up to Rs 100 million as it has obtained RBI’s and ministry of finance’s (MoF) approval. ‘‘We have got all clearances like RBI and MoF. When to move ahead depends upon the market,’ Louis De Jonghe, country director, ADB said here on Friday.

World Bank is also planning to float such bonds in India. Jonghe, however, did not reveal other details about the bond issue like the maturity period of the bonds. ADB is proposing to raise funds in rupee terms to cater

to the private sector as, Jonghe said, there was no appetite for dollar loan in the private sector.

Moreover, ADB channels all its loans through the Central government and there was no way for the Centre to stand as guarantee for the private sector. The entire funds would be recycled in India only for the private sector participation, he said, adding that as per ADB’s estimates there was enough demand in the sector and hoped the money would be distributed quickly.