Asian Development Bank will, for the first time, tap the Indian debt market in March to raise a little over Rs 4,500 crore (Rs 45 billion) through rupee bonds, which would be used for assisting private companies engaged in core sector.

"We hope to float the rupee bonds equivalent to $100 million in March this year," ADB head of financial and private sector, Cheolsu Kim, told PTI on Tuesday.

ADB has asked HSBC to work out the nitty-gritty of the tenor and coupon rates on the bonds, he said.

The Manila-based bank has obtained all necessary approvals from regulators – Reserve Bank of India and Securities and Exchange Board of India as well as the government for floating the bonds.

"The bonds may have a Libor-linked coupon rate as it was meant for the long term," Kim said.

The reason for adhering to Libor-linked tenor is the absence of a proper yield curve for long-term securities in India.

Kim said the proceeds from the bonds issue would be used to extend rupee loan assistance to Indian private companies, as it was being done by World Bank through its private lending arm International Finance Corporation.

ADB will extend loans mainly to companies engaged in infrastructure sectors.

World Bank and IFC also have plans to float rupee bonds in India but the exact timing would depend on the market conditions.