London Stock Exchange welcomes launch of IFC Rupee bond

  • Priti Patel MP, Exchequer Secretary to the Treasury attends welcome ceremony at London Stock Exchange
  • 10 billion INR ($163 million) bond issue
  • Longest-dated offshore ‘masala bond’ to date

London Stock Exchange today welcomed the IFC, a World Bank member, to celebrate the listing of 10 billion Indian Rupee ($163 million) denominated bond issue. The 10-year bonds are the longest-dated Rupee bonds listed on London Stock Exchange as well as being the longest-dated issued outside India.

The bonds were issued under IFC's $2 billion offshore Rupee program and yield 6.3 percent. The majority of investors are European asset managers. Earlier this year IFC became the largest issuer of Chinese RMB-denominated bonds on London Stock Exchange, and also listed the first green bonds denominated in the Chinese currency.
There are currently 13 Indian Rupee bonds listed on London Stock Exchange’s markets, which have raised approximately £560 million.

George Osborne, Chancellor of the Exchequer said: “Increasing our links with India has been a personal priority for me which is why I went to see Prime Minister Modi earlier this year to promote our economic relations and gave my backing to the new Gandhi statue in parliament square.

If we can create these strong financial links between our two countries as well, then the ties will be deeper still which is why I have been personally pushing for Rupee bonds to be issued in the UK markets and I am delighted this is now going ahead''.

Alexander Justham, CEO of London Stock Exchange said: “London Stock Exchange is the world’s most international market and a natural destination for overseas companies and institutions that are looking to raise capital. I’m delighted IFC has chosen London for this latest Rupee denominated bond issue, which represents the longest-dated offshore bond of this type ever issued.”

Jin-Yong Cai, IFC Executive Vice President and CEO said: "This bond issue demonstrates the powerful role that capital markets can play in linking international savings to infrastructure investment. The strong demand from investors’ signals continued momentum for the Indian economy."

Priti Patel, Exchequer Secretary to the Treasury said: “As we continue to strengthen Britain’s relationship with India, the IFC’s bond issue in London is welcome news, and is testament to our position as a global financial centre.

Infrastructure and financial services were two of the main areas identified for partnership between the UK and India during the recent Economic and Financial Dialogue between the Chancellor and Indian Finance Minister Arun Jaitley.

Proceeds raised from the bond will be exclusively invested in India’s infrastructure. As the government’s representative for the Indian diaspora, I am pleased to have Britain front and centre in this investment in India’s future.”

Andrea Leadsom, Economic Secretary to the Treasury said: “A key part of our long term economic plan is to cement Britain’s position as the global financial centre. That’s why I’m delighted that the International Finance Corporation has started its new $2billion offshore rupee programme by issuing this historic bond in London.

This is an important step in strengthening the economic and financial ties that exist between the UK and India, and is exactly the sort of development that I had in mind when I launched the UK India Financial Partnership in Mumbai.”

Notes to editors:

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