The government has approved a proposal to invest $4.3 billion in bonds of International Bank for Reconstruction and Development (IBRD), an arm of the World Bank. The Reserve Bank of India (RBI) will now subscribe to special private placement of bonds by the IBRD. The move would raise the agency's (IBRD) lending limit to India by around $21.8 billion and additional borrowing space would enable the government to commit new infrastructure projects with the World Bank assistance.
Investing in IBRD bonds is expected to widen the scope for more loans as the India’s ceiling for borrowing from the World Bank is reaching the limit. Presently, the limit for a single borrower of the World Bank is $17.5 billion. After the latest development the IBRD would be able to lend to India $4.3 billion above that Single Borrower Limit of $17.5 billion. Further these bonds would be of various tenures and the RBI would get return on investment. At the end of March 2013, the share of multilateral debt, which is usually at concessional rates and of long tenure, fell to 13.2% from over 20% at the end of March 2007.
The government is of view that the proposal will enable the country to leverage World Bank's knowledge base and global reach for transfer of knowledge, adoption of good practices, reforms of processes and systems and capacity building.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: