The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

IFC guarantees enter new territory

Issuer: Ballarpur Industries Amount: Rs1.5 billion Launched: February 2001 Lead manager: DSP Merrill Lynch


The International Finance Corporation, the World Bank affiliate charged with investing in private enterprise, broke new ground last month when it provided a partial guarantee for 10-year rupee-denominated bonds issued by Ballarpur Industries (BILT) of New Delhi, India. The Rs1.5 billion ($32 million) private placement was a milestone of sorts in efforts by the Washington-based lender to ramp up a guarantee programme that it had seldom used before. The IFC had never used a guarantee to enhance the credit quality of local-currency-denominated bonds.

The BILT bonds carry a coupon of 11.7%, yielding 120 basis points over 10-year government securities. The deal found acceptance with investors that had expected it to pay about 100bp more, after the IFC spent time presenting a theoretical evaluation.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree