Indian Minister of Road Transport & Highways and Shipping launches NHAI Masala bond in London
- National Highways Authority of India (NHAI) chooses London for first global offshore Masala bond, raising INR 30 billion (USD 467 million equivalent)
- Minister of Road Transport & Highways and Shipping Shri Nitin Gadkari is hosted at London Stock Exchange
- Confirms London Stock Exchange’s position as leading international listing venue for Indian finance
London Stock Exchange today welcomes the first global offshore Masala bond by the National Highways Authority of India (NHAI). The landmark bond issuance from NHAI, the Government of India’s agency responsible for the management of India’s highways network, reinforces the ability of London’s global Masala bond market to support Indian infrastructure financing. The bond marks the largest ever five-year issuance and is the largest inaugural transaction in the Masala bond market, demonstrating London’s increasingly global investor base.
Nikhil Rathi, CEO, London Stock Exchange plc welcomed Minister of Road Transport & Highways and Shipping Shri Nitin Gadkari, together with NHAI representatives at London Stock Exchange today. Minister Gadkari addressed guests on the Government of India’s initiatives in infrastructure and opportunities for investors to participate in India’s growth story.
The 60 month dated Rupee denominated bond, commonly known as a Masala bond, raised INR 30 billion, equivalent to USD 467 million, with an annual yield of 7.3%. The issuance secured global investor backing and will support Prime Minister Narendra Modi and Minister Gadkari’s plans to accelerate infrastructure investment across India. The listing follows Prime Minister Modi’s announcement of USD 1 billion equivalent of Masala bond issuance in the UK, made during his visit to London in 2015.
London Stock Exchange has a strong track record of supporting Masala bond issuance by supranational, municipal and private company institutions on its markets. To date in 2017, there have been five Masala bond listings in London, raising USD 135 million equivalent. In total, 39 Masala bonds have listed on London Stock Exchange, raising equivalent to approximately USD 5.4 billion.
Minister of Road Transport & Highways and Shipping Shri Nitin Gadkari:
“Our Government is fully committed to bridge the infrastructure deficit in the country. Prime Minister Shri Narendra Modi, Finance Minister and I are on the same page on this and we firmly believe that consistent high level public investment in transport infrastructure including Highways, Ports, Airports and Railways is going to accelerate the economic growth in the country. Improvement in the quality of connectivity across the length and breadth of India will help us achieve the vision of our Government of ‘Sabka Saath Sabka Vikaas’”.
Mr Yudhvir Singh Malik, Chairman, NHAI:
“National Highways Authority of India is committed to implement the Government’s vision of delivering high quality highways infrastructure in the shortest possible time. As you would appreciate, National Highways act as force multipliers in the overall economic growth of the country and NHAI plays a critical role therein. We are fully aligned to the aspirational program and expectations of the Government in this endeavor in the coming years.”
Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group:
“We are honoured to welcome Minister Gadkari to London Stock Exchange and warmly congratulate NHAI on their successful bond listing today. It is a significant achievement for NHAI and London’s capital markets. It underlines the vital new international channel of funding that is open for Indian issuers in London and the strength of international investor interest in building exposure to India’s growth story.
“London Stock Exchange, the global home for Masala bonds is proud to be the partner of choice for NHAI as it embarks on its journey to accelerate infrastructure investment across India. NHAI’s infrastructure programme, has attracted global investor support through London – testament to the City’s status as a global financial centre and a strong partner to India.”
NHAI’s bond listing is the latest in a long line of global firsts for London Stock Exchange Group, including numerous high profile Rupee denominated bond issuances on London Stock Exchange over the past 24 months:
- March 2017 – HDFC lists world’s largest corporate masala bond in London, raising USD 504 million equivalent
- January 2017 – European Bank for Reconstruction & Development issues USD 62 million masala bond, the first in London and Europe in 2017
- September 2016 - British Columbia issues world’s first Masala bond by a foreign government entity
- August 2016 – NTPC, Indian energy conglomerate becomes first Indian green Masala bond issuer
- July 2016 – HDFC lists world’s first Masala bond by an Indian corporate
- June 2016 – Axis Bank lists India’s first internationally listed certified green bond & its entire USD 5 billion MTN programme
- June 2016 - first Chinese sovereign RMB bond issued outside of China lists in London, bringing total number of offshore RMB bonds issued in 2016 alone in London to 54, more than all other offshore RMB markets combined
- August 2015 - International Finance Corporation (IFC) issues world’s first offshore green Masala bond, raising USD 52 million equivalent
- February 2014 – IFC lists first Rupee denominated bond, going on to issue a further 3 Masala bonds in London over 2 years
Further information can be found online at London Stock Exchange Group’s Masala Bonds portal.
- Ends -
For further information:
Ramesh Chhabra +44 (0) 20 7797 1222
Notes to editors:
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698.
The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe's leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.
Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $10 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of data services, research and analytics through Mergent, SEDOL, UnaVista, XTF and RNS.
Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and globeSettle, the Group’s CSD based in Luxembourg.
LSEG is a leading developer and operator of high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group’s technology companies.
Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 3,500 people.
Further information on London Stock Exchange Group can be found at our website