First private sector Indian corporate set to issue Masala bonds in London

New Delhi, Nov. 12 (ANI): India’s largest mortgage finance company, Housing Development Finance Corporation (HDFC), has chosen London Stock Exchange to launch a programme of offshore rupee-denominated bonds, the first by a private sector Indian company.

The ‘Masala’ bonds are set to raise up to USD 750 million, with the proceeds being used to improve housing infrastructure in India. Masala bonds will be crucial to the expansion of India’s innovative economy as they allow Indian companies to raise finance to expand and grow without exposing themselves to currency risk.

Coming in the same week as the visit of Indian Prime Minister Narendra Modi, this will help strengthen the increasingly vibrant economic and financial ties between the UK and India.

London Stock Exchange Group has a long history of supporting Indian companies seeking international growth capital. There are currently 55 Indian or India-focused companies quoted on London’s markets in addition to 26 Indian Global Depository Receipts listed on London’s International Order Book. In 2014 the total value of Indian GDR trading on IOB was US$6.23bn. Indian companies have raised equity capital worth $8.1 billion in London. London Stock Exchange has seen 27 INR or Masala bonds listed in total on its markets (12 currently active) that have raised GBP equivalent of £2.85 billion.

“This milestone issuance, the first of its kind globally, is a significant development for private sector Indian companies looking to access international capital to finance Indian infrastructure projects. London Stock Exchange is the leading international exchange for offshore rupee-denominated Masala bonds and we look forward to working with other companies to launch similar programmes to the one announced today. London Stock Exchange has more Indian companies listed on our equity and debt markets than any other international market and through MillenniumIT, LSEG also provides cutting edge technology to some of India’s leading exchanges,” said Nikhil Rathi, CEO, London Stock Exchange.

“There is renewed vigour in the India-UK relationship and HDFC is delighted to announce its intention to list its bonds on London Stock Exchange. UK is the global hub for financial services and the Reserve Bank of India’s guidelines permitting overseas Rupee denominated bond, will open up a new source of funding for us,” added HDFC chairman Deepak S Parekh.

London Stock Exchange Group (LSE.L) is a diversified international market infrastructure and capital markets business sitting at the heart of the world’s financial community. The Group can trace its history back to 1698.

The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe’s leading fixed income market; and Turquoise, a pan-European equities MTF. It is also home to one of the world’s leading growth markets for SMEs, AIM. Through its platforms, the Group offers international business and investors’ unrivalled access to Europe’s capital markets.

Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of multi-asset global CCP operator, LCH.Clearnet Group, LSEG operates CC&G, the Italian clearing house; Monte Titoli, the T2S-ready European settlement business; and globeSettle, the Group’s newly established CSD based in Luxembourg.

The Group is a global leader in indexing and analytic solutions. FTSE Russell offers thousands of indexes that measure and benchmark markets around the world. The Group also provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, and RNS.

London Stock Exchange Group is a leading developer of high performance trading platforms and capital markets software for customers around the world. In addition to the Group’s own markets, over 35 other organisations and exchanges use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 4,700 people.

Further information on London Stock Exchange Group can be found at www.lseg.com (ANI)

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