Multilateral funding agency Asian Development Bank (ADB) has raised Rs 5 billion, or around Rs 500 crore, by issuing five-year offshore Indian rupee-linked bonds.

“The Asian Development Bank (ADB) has raised Rs 5 billion (about $ 74 million) from its issuance of 5-year offshore Indian rupee (INR) linked bonds, ” it said in a release.

This was, ADB said, its third bond issue in the offshore rupee-linked market, and the second such issue this year.

“The strength of the Indian economy has led to increasing demand from international investors for Indian rupee-linked bonds,” said ADB Treasurer Pierre van Peteghem.

“This transaction, with the longest maturity and the largest size of any previous ADB rupee bonds, demonstrates the underlying investor interest in India and ADB’s commitment to help develop the country’s capital markets,” Peteghem said.

Also, ADB said plans to raise around $ 20 billion from the capital markets in 2016.

The proceeds from the bonds to support private sector lending in the Indian market. India is ADB’s fourth largest shareholder and is its largest borrower, excluding co-financing.

In 2015, ADB approved USD 836 million in private sector projects in India, its largest market.

The bonds, which are denominated in Indian rupees but settled in US dollars, carry a coupon of 6.45 per cent and will mature on 8 August 2021.

Further, ADB informed that the bond was underwritten by Citibank and JP Morgan.

It said 31 per cent of the bonds were placed in Asia and 69 per cent in Europe, the Middle East, and Africa. By investor type, 70 per cent of the bonds were placed with banks, and 30 per cent with fund managers.

ADB is a regular borrower in the mainstream international bond markets but has also led issuance in developing Asian countries as part of efforts to promote domestic bond markets as an alternative to bank lending.

Manila-headquartered ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

The funding agency is owned by 67 members-48 from the region.

In 2015, ADB assistance totalled USD 27.2 billion, including co-financing of USD 10.7 billion.