Boosting infra in India: Rs 1,000-cr bond issued on London Exchange

  • Prasun Sonwalkar, Hindustan Times, London
  • Updated: Nov 18, 2014 23:38 IST

Britain has welcomed the International Finance Corporation’s (IFC) announcement that it has issued an bond worth Rs 1,000 crore, on the London Stock Exchange on Tuesday, whose proceeds will be used to drive infrastructure plans of Prime Minister Narendra Modi.

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 IFC has started its new $2-billion 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,” she added.

Proceeds from the bond are to be exclusively invested in India’s infrastructure.

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 United Kingdom and India during the recent Economic and Financial Dialogue between Chancellor George Osbourne and Indian finance minister Arun Jaitley,” Patel said.

In July, Osborne and Jaitley had agreed to deepen collaboration on financial services and infrastructure.

IFC is part of the World Bank Group and provides advice and investment to help the private sector find solutions to development issues.

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