IFC opens London markets to commemorate longest-dated Masala Bond

2016-IFC, a member of the World Bank Group, today opened trading on London Stock Exchange to commemorate IFC's historic 15-year Masala bond, marking the longest-dated offshore rupee bond ever issued. The bond raised 2 billion rupees (or nearly $30 million), highlighting long-term investor confidence in India.

The bond will help deepen India's capital markets by extending the yield curve and setting a pricing benchmark for future issuances with similar maturities. IFC has previously issued Masala bonds in maturities of three, five, seven, and 10 years.

"Lasting prosperity depends on strong and efficient capital markets," said IFC VP and Treasurer Jingdong Hua. "With our latest Masala bond issuance, IFC has created an offshore rupee-market yield curve that stretches from three to fifteen years, deepening the market and making it more resilient. This sends a clear signal that investor demand for high-quality assets in India remains strong, despite global financial uncertainties."

"London is the leading global financial centre and we welcome the rapid growth of the offshore rupee "masala" bond market here," said Harriett Baldwin, UK Economic Secretary to the Treasury.

"IFC's 15-year masala bond demonstrated long-term investor confidence in India's growth," said Navtej Sarna, Indian High Commissioner to the UK. "Innovative financing mechanisms like IFC's Masala program are critical to mobilize long-term funding for India's infrastructure expansion."

"As a world first, the successful issuance of IFC's 15-year Masala bond on London Stock Exchange highlights London's ability to attract significant capital for investment opportunities in India," said Suneel Bakhshi, CEO, LCH.Clearnet Group & Member, London Stock Exchange Group Executive Committee. "We are committed to establishing London as the leading centre for rupee denominated offshore capital raising and we look forward to further collaboration with international and Indian issuers."

The triple-A-rated bonds are issued under IFC's $3 billion Masala bond program. Under the program, IFC has issued bonds worth almost 110 billion rupees, including the first green Masala bond to support climate-smart investment in India. 14 private sector development projects in India has received Masala-bond financing so far.