LONDON: The first rupee-denominated bond issued outside India by an Indian company – termed “masala” bond – was listed on the London stock exchange on Monday, delivering one of the commitments made during Prime Minister Narendra Modi’s visit last November.
Chancellor Philip Hammond welcomed the landmark listing by HDFC as it was launched when the markets opened. The event was attended by Indian high commissioner Navtej Sarna among others. The bond raised ₹3,000 crore, equivalent to $450 million. It has a maturity of three years and an annual yield of 8.33%. It was more than four times oversubscribed, officials said.
Hammond said: “It represents a major vote of confidence in London as the leading global financial centre and is further proof that Britain is a great place to do business. This deal signifies a strengthening of the already close economic ties between the UK and India”.
HDFC chairman Deepak Parekh said: “The listing of these bonds on LSE gives us immense pride. While we did explore other markets for listing, the responsiveness and efficiency with which the officials responded to our urgent requirements was remarkable.”