The Kerala Infrastructure Investment Fund Board's (KIIFB) on Friday celebrated its debut Masala Bond listing on the London Stock Exchange with a special market open ceremony.
The KIIFB is the first sub-sovereign entity in India to tap the offshore Rupee international bond market with the USD 312 million equivalent (INR 21.5 billion) senior secured fixed-rate bond and is aimed at accessing capital from international investors for the southern state's infrastructure development.
"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," said KIIFB CEO K.M. Abraham, who described the development as a milestone for the company and 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, he said.
The bond, with a five-year tenor and a 9.723 per cent coupon, has been admitted to London Stock Exchange's International Securities Market (ISM).
Darko Hajdukovic, Head of Fixed Income, Funds & Analytics, UK Primary Markets, London Stock Exchange said: "London Stock Exchange warmly congratulates KIIFB on its landmark debut Masala bond.
Our markets have enabled issuers to raise over USD 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."
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