NHAI masala bond attracts bids worth Rs 3000 cr at LSE

Rufina Vignone
Mag 12, 2017

The NHAI, given its strong linkages to the government of India and its strategically important role to the national economy, is uniquely placed to help attract the widest possible investors to the masala bond market and help in the development of this market, it said.

Union Minister Nitin Gadkari will visit the United Kingdom this week to promote the masala bond market for India's infrastructure needs.

London, Union Minister Nitin Gadkari will deliver a special address at the London Stock Exchange (LSE) and launch NHAIs masala bonds on Thursday.

"In order that an active market develops for Masala Bonds top Indian issuers need to access the market thereby enhancing the liquidity of the Masala Bond market and also giving global investors the opportunity to have exposure to the Indian Rupee", said a statement from the ministry.

The initial benchmarked issue of Rs. 1,500 crore was upsized to Rs. 3,000 crore at a price yielding 7.30 percent annually in view of the highly positive response from the investor market. NHAI's debut masala bond issuance is also expected to list on the LSE during the ministerial visit.

Until recently, the ability of Indian companies and other issuers to borrow from the overseas markets was predominantly limited to foreign currencies, but Masala Bonds have finally taken off, giving Indian companies from various sectors the ability to access the global capital markets and raise financing without taking on the attendant exchange rate risk.

The rupee-denominated offshore bonds, popularly known as Masala Bonds, got a tax benefit in the budget for 2017-18.

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