UK welcomes issuance of HDFC's Masala bond at London Stock Exchange
London, July 15 (IBNS): UK Trade and Investment has welcomed the world's first Masala bond issued by an Indian corporate HDFC at the London Stock Exchange.
The landmark bond issuance from Housing Development Finance Corp (HDFC), one of India’s leading banking and financial services companies was 4.3 times oversubscribed and paves the way for the opening of the Masala bond market globally to support Indian company and infrastructure financing.
The 37 month dated Rupee denominated bond, commonly known as a Masala bond, raised INR 30 billion, equivalent to USD 450 million, with an annual yield of 8.33% and secured global investor support.
The bond will help HDFC to diversify its borrowing profile and access global investors. The listing follows Prime Minister Narendra Modi’s announcement of USD 1 billion equivalent of Masala bond issuance in the UK, made during his visit to London in 2015.
Welcoming this new milestone between UK and India, Director General of UK Trade and Investment in India Kumar Iyer said: "This bond is the latest in a series of Rupee denominated issuances pioneered in London and in which London is leading the way. The UK is committed to supporting India's growth ambitions including by helping to bring capital from across the world to invest in India and ‘Make in India’. London’s financial markets are in pole position as a destination for India to raise offshore finance. As Prime Minister Modi said: we’ve got “James Bond, Brooke Bond and now Masala Bonds!”
London Stock Exchange has a strong track record of supporting Masala bond issuance by supranational institutions on its markets. 30 offshore Indian Rupee bonds have listed in total on London Stock Exchange, raising equivalent to approximately USD 3.5 billion.
London Stock Exchange last year saw the listing of the world’s first ever green Masala bond on its markets and there have been two further listings in 2016, raising a total of INR 7 billion, reinforcing London Stock Exchange’s position as the leading global listing venue for Rupee denominated bonds.
Roshni Nadar of HCL Tech is India's richest woman in 2020: Kotak Wealth Hurun India list Fri, Dec 04 2020
ICICI Bank inaugurates representative office in Nepal Thu, Dec 03 2020
GRSE organizes free health camp for contractors’ workmen Thu, Dec 03 2020
Bank of India acquires 49 pc stake in subsidiaries Thu, Dec 03 2020
RBI temporarily stops HDFC Bank from adding new customers Thu, Dec 03 2020
First session of Leadership Summit 2020 organised by the Alumni Cell of IIT-K is on financial inclusion Thu, Dec 03 2020
Leadership Summit 2020 organised by the Alumni Cell of IIT-K will be held on virtual platform Thu, Dec 03 2020
Indian sugar production doubles to 42.90 lac tons in 2020 Thu, Dec 03 2020