April 01, 2019
KIIFB lists debut Masala bond on London Stock Exchange
- Kerala Infrastructure Investment Fund Board lists INR 21.5 billon Masala bond on London Stock Exchange’s International Securities Market
- First Masala bond issued by a sub-sovereign entity in India
- London is largest Masala bond centre globally with 49 bonds raising over $7.5 billion equivalent
- Reinforces London’s role as a leading international finance centre, attracting global issuers to its markets
London Stock Exchange welcomes Kerala Infrastructure Investment Fund Board’s (KIIFB) debut Masala bond, the first sub-sovereign entity in India to tap the offshore rupee international bond market. The INR 21.5 billion ($312 million equivalent) senior secured fixed-rate bond has a five-year tenor with a 9.723% coupon. The bond has been admitted to London Stock Exchange’s International Securities Market.
Dr. K.M. Abraham, Chief Executive Officer, Kerala Infrastructure Investment Fund Board:
"This is a milestone transaction for the Kerala Infrastructure Investment Fund Board and for the State of Kerala. KIIFB is the first sub-sovereign entity in India to access the international debt capital markets in this manner. This transaction has realised our objective of diversifying our sources of funding by accessing capital from international investors. KIIFB strives to be at the forefront of creating a sustainable development model for infrastructure financing in the emerging markets and an exemplar for best practices in corporate governance and fund management."
Darko Hajdukovic, Head of Fixed Income, Funds & Analytics, UK Primary Markets, London Stock Exchange:
"London Stock Exchange warmly congratulates KIIFB on its landmark debut Masala bond. Our markets have enabled issuers to raise over $7.5 billion equivalent, allowing Masala bonds to evolve from a specialist segment to a mainstream asset class. KIIFB’s bond highlights London’s status as a leading international financing centre, offering issuers access to the deepest pool of long-term international investor capital as well as best in class listing solutions.”
London Stock Exchange is the largest Masala bond centre globally. 49 Masala bonds have listed across our markets raising in total over $7.5 billion equivalent. Recent significant issues include IREDA’s Masala bond in 2017, the first green Climate Bonds Certified and investment grade rated bond by a financial institution; NTPC’s listing in 2016, the world’s first Indian green Masala bond and first Masala bond by a quasi-sovereign issuer; and HDFC’s 2016 listing, the first Masala bond by an Indian corporate on London Stock Exchange. Since its launch in 2017, London Stock Exchange’s International Securities Market has welcomed 67 bonds with $25 billion equivalent raised.
About London Stock Exchange Group
LSEG (London Stock Exchange Group) is a leading provider of financial markets infrastructure and a global supplier of data and analytics, news and index products.
We help businesses and economies fund innovation, manage their risk and create jobs by supporting customers at every point in the trade lifecycle – from making pre-trade decisions and executing those trades to raising capital and settlement.
With 23,000 people in 70 countries, we draw on 300 years of knowledge and experience to help drive financial stability, empower economies and enable sustainable growth.
Nandeep Roopray / Lucie Holloway
+44 (0)20 7797 1222