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Kerala board celebrates London Masala Bond listing

Press Trust of India  |  London 

The Infrastructure Investment Fund Board's (KIIFB) on Friday celebrated its debut Masala listing on the Stock Exchange with a special market open ceremony.

The KIIFB is the first sub-sovereign entity in to tap the offshore Rupee international market with the USD 312 million equivalent (INR 21.5 billion) senior secured fixed-rate 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 K.M. Abraham, who described the development as a milestone for the company and the state of

"KIIFB is the first sub-sovereign entity in 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 Stock Exchange's International (ISM).

Darko Hajdukovic, of Fixed Income, Funds & Analytics, UK Primary Markets, Stock Exchange said: "warmly congratulates KIIFB on its landmark debut

Our markets have enabled issuers to raise over USD 7.5 billion equivalent, allowing 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 "

London Stock Exchange claims to be the largest centre globally, with 49 such rupee-denominated bonds listed across its markets.

"The opening of this new listing further enhances London's role as a leading international centre, attracting global issuers to its markets and strengthening our relationship with and This is further proof that London is Open as the best city in the world in which to do business," said Rajesh Agrawal, of London for Business.

Other issues at the London Stock Exchange include IREDA's Masala Bond in 2017, the first green Climate Bonds Certified and investment grade rated bond by a financial institution; NTPC's listing in 2016, the world's first Indian green Masala Bond and first Masala Bond by a quasi-sovereign issuer; and HDFC's 2016 listing, the first Masala Bond by an Indian corporate on London Stock Exchange.

A Masala Bond is a rupee-denominated bond issued to overseas investors and are settled in US Dollars and are typically subject to English law.

London Stock Exchange said its International (ISM), launched in 2017, has been designed to meet the demands of issuers and investors to improve the effectiveness and competitiveness of the UK primary debt markets, providing greater choice for a variety of fixed income issuers.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 17 2019. 16:56 IST
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