ZyFin to raise $500 mn by listing fund abroad

ZyFin Holdings will be listing its Indian fixed income exchange-traded fund (ETF) on the Deutsche Börse on Tuesday and on the London Stock Exchange on Thursday. The company is looking at raising $500 million through these listings over the next six months. The LAM Sun Global ZyFin India Sovereign Enterprise Bond UCITS ETF will offer international investors exposure to a basket of the country's public sector corporate bonds.

Indian sovereign-owned enterprises are 51 per cent owned or more by the Indian government. This is the first time that foreign investors have had the opportunity to invest in these difficult to access, but well researched AAA rated Indian companies, a company statement said.

The UCITS compliant ETF provides exposure to corporate bonds, which have a weighted average maturity of over 8.97 years and although partly state-owned, yield 8.23 per cent (in local Indian currency) which is higher than an Indian Sovereign Bond, it said.