NSE IFSC launches debt securities; lists IREDA's masala bonds

Leading bourse National Stock Exchange (NSE) today launched the debt securities platform at its international exchange NSE IFSC at Gujarat's Gift City with the listing of IREDA's Rs 1,950-crore green masala bond.

The bond issue by Indian Renewable Energy Development Agency (IREDA) is the first debt security to be listed on the NSE IFSC and will offer high cost efficiency as well as enable issuers to access international investors.

"The launch of the debt securities market at NSE IFSC will allow the listing and trading of debt securities in foreign currencies as well as the rupee-denominated masala bonds," NSE managing director and chief executive officer Vikram Limaye said in a statement today.

"This listing is a great opportunity for Indian issuers going overseas to attract international investors in their home country," he added.

IREDA green masala bond were first issued in September last year on the London Stock Exchange and later on Singapore Stock Exchange in October. An amount of USD 300 million (Rs 1,950 crore) was raised through issue of these bonds.

Proceeds from the issues were used to finance renewable energy projects across India.

Funds and insurance companies formed the bulk of investors at 62 per cent, while public and private banks formed 32 per cent and 8 per cent of the investor-base for these bonds, respectively.

Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency.

NSE IFSC, which was launched on June 5 last year, offers trading in Indian and global stock, index, currency, and non-agriculture commodity derivatives.