Comments
International Finance Corporation’s 15-year Masala Bonds opened for trading on the London Stock Exchange on Monday.
A statement from the bourse said the issuance is the longest-dated offshore rupee bond ever issued. The bond raised ₹200 crore (or nearly $30 million), highlighting long-term investor confidence in India. Masala bond is a term used to refer to rupee-denominated borrowings by Indian entities in overseas markets.
Creating yield curveThe bond seeks to deepen India’s capital markets by extending the yield curve and setting a pricing benchmark for future issuances of similar maturities. IFC has previously issued Masala bonds in maturities of three, five, seven, and 10 years.
Jingdong Hua, VP & Treasurer, IFC, said: “With our latest Masala bond issuance, IFC has created an offshore rupee-market yield curve that stretches from three to 15 years, deepening the market and making it more resilient. This sends a clear signal that investor demand for high-quality assets in India remains strong, despite global financial uncertainties.”
$3-b bond programmeSuneel Bakhshi, CEO, LCH.Clearnet Group & Member, LSE Group Executive Committee, said: “We are committed to establishing London as the leading centre for rupee-denominated offshore capital-raising and we look forward to further collaboration with international and Indian issuers.”
The triple-A-rated bonds are issued under IFC’s $3-billion Masala bond programme. Under the programme, IFC has issued bonds worth almost ₹11,000 crore, including the first green Masala bond to support climate-smart investment in India. Fourteen private sector development projects in India have received Masala bond financing so far.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.