NTPC lists world’s first green Masala bond by an Indian issuer on London Stock Exchange

  • NTPC, lists world’s first Indian green Masala bond and first masala bond by a quasi-sovereign issuer
  • Listing raises INR 20billion (c.$ 300 million), with 7.48 per cent annual yield, attracting global investor support
  • Listing follows Minister Goyal’s London Stock Exchange  April visit - supports Indian Government’s target to generate 175GW of renewable energy by 2022
  • Bond has been independently certified by Climate Bonds Initiative, a partner of London Stock Exchange
  • Confirms London Stock Exchange as international listing venue of choice for Indian & green finance

London Stock Exchange today is proud to welcome another global first, with NTPC the first ever Indian quasi-sovereign to issue a Masala bond, choosing London, the global home for Masala bonds, for its listing. NTPC’s, India’s leading energy conglomerate, green Masala bond raised INR 20 billion (c. $300 million) with 7.48 per cent annual yield, securing high quality investor support from across Europe and Asia. The bond is Climate Bonds Initiative certified and will be listed on London Stock Exchange’s green bonds segment.

NTPC will invest the proceeds of the green Masala bond in the renewable energy market as it seeks to add more wind and solar power projects to its portfolio, supporting the Indian government’s ambition to generate 175GW of renewable energy by 2022.

The listing follows the visit of Piyush Goyal, Minister of State for Power, Coal, New & Renewable Energy, of the Government of India to the UK earlier this year to strengthen UK-India collaboration on power and renewable energy. It also builds on the announcements made by Prime Minister Narendra Modi to list $1 billion equivalent of Masala bonds in the UK, made during his landmark visit to London in 2015.

London Stock Exchange has a strong track record of supporting green and Masala bond issuances by supranational institutions, municipals and private companies on its markets.

  • 35 green bonds are listed on London Stock Exchange, including those denominated in INR and RMB, raising approximately $8.7 billion
  • In 2016 alone, 10 new green bonds in 4 different currencies raised approximately $3.6 billion
  • Last year, IFC, a member of World Bank Group, listed the first ever Green Masala bond on London Stock Exchange
  • 30 Masala bonds have listed on London Stock Exchange, raising equivalent to approximately $ 3.5 billion

Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group:
“NTPC’s landmark independently certified green Masala bond listing, the first Masala bond by an Indian quasi-sovereign issuer, represents another historic event for Indian finance. We are honoured to have been chosen to support NTPC access Rupee-based financing in London’s international capital markets, reinforcing India’s ambitions to generate 175GW of renewable energy by 2022.  

“London Stock Exchange has in recent weeks hosted landmark Indian issuances by Axis Bank and HDFC and today we are delighted to host the world’s first independently certified green Masala bond by NTPC.
This cements London’s position as the listing venue of choice for a variety of Asian issuers, from quasi-sovereign to supranational institutions, municipals and private companies. We are excited about continuing to build this market with Indian partners and authorities over the long-term, underlying the success of the India-UK Financial Partnership."

NTPC’s bond listing is the latest in a long line of global firsts by Asian issuers on London Stock Exchange.

  • 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 $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 in London to 54, more than all other markets combined
  • August 2015 - International Finance Corporation (IFC) issues world’s first green Masala bond, raising £31 million equivalent
  • November 2014 – IFC lists first Masala bond, going on to issue a further three Masala bonds in London over the last two years

In June 2016, London Stock Exchange hosted a landmark Indian Green Infrastructure Investment Coalition forum, bringing together institutional investors and infrastructure project developers to discuss green financing opportunities in the Indian market

To find out more about London Stock Exchange’s Masala bond offering, visit Masala Bonds

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