The Asian Development Bank is all set to tap the Indian capital market with its maiden bonds issue amounting to over Rs 455 crore (Rs 4.55 billion) and said its loan sanction to the country would go up to $1.7 billion next year.

"We have got all the clearances for the $100 million bond issue, which would be issued in rupee denomination. The exact time of the issue is not known. Our treasury department will decide on the time," ADB country director, Louis De Jonghe, told PTI in New Delhi on Thursday.

RBI had earlier given the permission and recently the Securities and Exchange Board of India too gave the green signal for the long-term bonds of ADB along with World Bank and International Finance Corporation.

Jonghe said the bank would utilise the funds for extending rupee loans to corporates in the private sector.

"It will be a market-based activity and it would be good for the Indian capital market as well," he added.

On the bank's future plans in India, Jonghe said: "We have committed about $1.5 billion this year. Next year, we are planning to extend $1.6-1.7 billion to India."

The major projects that are being funded by ADB include two road projects -- one for National Highways Authority of India and another for Chattisgarh.

ADB is also funding Madhya Pradesh for urban development in cities like Indore and power development projects of Assam.