London Stock Exchange welcomes KIIFB's debut Masala bond
London Stock Exchange today 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."
Rajesh Agrawal, Deputy Mayor of London for Business, said:
"The opening of this new listing further enhances London’s role as a leading international finance centre, attracting global issuers to its markets and strengthening our relationship with Kerala and India. This is further proof that London is Open as the best city in the world in which to do business."
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.