FTSE TMX and State Bank of India to Launch FTSE SBI India Bond Index

  • First FTSE TMX product dedicated to Indian fixed income securities
  • Developed in partnership with State Bank of India for new investment fund
  • Project will strengthen UK-Indian financial ties

FTSE Russell, the global index provider, today announced the signing of letter of intent between FTSE TMX Global Debt Capital Markets and State Bank of India to develop in partnership, a new index tracking Indian fixed income securities. State Bank of India, India’s largest bank, intends to use the new index as the basis for a new investment product.

The letter of intent, signed in the same week of the visit of India Prime Minister, Narendra Modi to the UK, is a first for FTSE Russell and provides it, and parent company London Stock Exchange Group (LSEG), with an important platform in India’s burgeoning domestic financial market.

Donald Keith, Deputy CEO, FTSE Russell said:
“This is an important step for FTSE Russell and LSEG as a whole, providing us with a strong platform and strategic alliance for building our presence in India. Together with State Bank of India, we will provide the tools to build investment in India, developing deeper pools of international liquidity in the sovereign and corporate bond markets. We are fully committed to supporting State bank of India’s ambitions to develop the Indian fixed income market as well as facilitating closer ties between India and international investors. The letter of intent signed today will accelerate progress towards significant and exciting milestones in this important new chapter in global finance.”

Smt. Arundhati Bhattacharya, Chairman, State Bank of India said:
“We are delighted to be partnering with London Stock Exchange Group to create the FTSE SBI bond indices for India. Despite investor appetite to access India’s ongoing growth story, at present Indian issuers’ bonds do not have a credible global benchmark for passive investment funds that captures the Indian growth story. The FTSE SBI Indian Bond indices will be a catalyst in the ongoing development and deepening of Indian sovereign and corporate bond markets. It will provide a benchmark for attracting passive funds into Indian bonds as an asset class. Further, it will contribute to bond liquidity and dynamic pricing, as well as enable the evolution of the secondary market for Indian issuers’ bonds.”

Sumit Jamuar, Chief Executive Officer of SBICAP (UK), India’s leading Investment bank and wholly
owned subsidiary of the State Bank of India added:
“Given the strength of the UK and India partnership and London’s status as the pre-eminent financial centre, we are confident that this collaboration between the State Bank of India and London Stock Exchange Group will further contribute to the creation of vibrant and deep bond markets for Indian issuers, providing international capital with a further means to access India’s developing economy.”

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Notes to editors:

About FTSE Russell:
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FTSE Russell’s fixed income business is operated through FTSE TMX Global Debt Capital Markets. FTSE TMX Global Debt Capital Markets is a leading global provider of fixed income indices. Formed in 2013, FTSE TMX Debt Capital Markets is a joint venture that combines the fixed income index businesses of FTSE Russell, TMX and MTS. This rapidly expanding business offers both global indices and analytical systems, and provides the flagship domestic benchmarks for a growing number of regions including Canada, UK and Eurozone.

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