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Factsheet
Indian Rupee Bonds on London Stock Exchange
Listing Masala Bonds in London
Benefits of listing Debt in London
There are currently 12 “masala bonds” listed on London Stock
Exchange’s markets with a combined outstanding value of INR
93.76 billion.
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An increased primary market activity has characterized 2014 and
2015, with 13 INR denominated bonds listed in London by
International Finance Corporation (IFC), Inter-American
1
Development
Bank (IDB) and European Bank for Reconstruction
and Development (EBRD).
Following the Reserve Bank of India's revisions to the External
Commercial Borrowing framework in April 2015, there is an
increasingly wider range of companies looking at London to
issue Indian rupee denominated debt securities, and a steadily
growing pool of international capital ready to absorb a higher
level of masala bond issuance.
Key milestones:
 Nov 2014: First INR denominated bond listed by
International Finance Corporation in London to support
infrastructure development in India. The Rs 10bn 10 year
Masala bond is the longest-dated paper in the offshore
rupee markets
 Apr 2015: IFC issues a three-and-a-half year, 6.45% bond
that raised Rs 16 bn – the largest ever rupee denominated
bond issued outside India
 Apr 2015: Reserve Bank of India revises the External
Commercial Borrowing framework
 Aug 2015: IFC issues in London the first INR Green Bond
globally. The Rs 3.15bn proceeds were invested in Yes
Bank’s onshore green bond.
 July 2016: HDFC lists world’s first offshore Masala bond by
Indian corporate on London Stock Exchange.
Governmental institutions and government officials in both
London and India see the benefits of offshore rupee bond
issuance and a strengthened role of London as a premier hub
globally for any financial activity1. Opening up an important
funding avenue through Masala bond issuance is indeed a
declared objective of RBI and the UK Government has
repeatedly stated that strengthening the economic and financial
links between India and the UK is a key priority2.
Listing – admission to
the UK Official List
(UK Listing Authority/
Exchange Admissions
Team)
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London, more than any other financial centre, offers a longstanding globally oriented investor base
Admission to London Stock Exchange’s debt markets allows
international governments and companies to access a deep
pool of liquidity
Choice of high-quality listed markets, London Stock
Exchange’s Main Market and Professional Securities Market
(PSM) are seen as ‘best in class’ among investors
Range of secondary market solutions, from OTC-style trade
reporting to end-of-day pricing to fully electronic
continuous market maker quoting
Debt listings in London are supported by a range of London
Stock Exchange marketing and PR initiatives, tailored to suit
the needs of issuers
London Stock Exchange and UK Listing Authority offer the
highest standards of disclosure and regulatory oversight
whilst remaining accessible, flexible and predictable in
turnaround timings
UKLA has provided named contacts to support first time
Indian issuers and their advisors in discussions related to
the issuance of rupee bonds in London
Indian Rupee Bonds on the Main Market
Issue Date
Amount
(INR billion)
Tenor
21-July-2016
30
3yrs
IFC 7.1% 21/03/2031
21-Mar-16
2
15yrs
EBRD 6.4% 03/04/2016
04-Mar-16
5
3yrs
IFC 6.45% 30/10/2018
10-Aug-15
3.15
5yrs
IFC 6.45% 30/10/2018
30-Apr-15
18
3.5yrs
EBRD 5.1% 02/02/17
02-Feb-15
3.11
2yrs
IFC 6.3% 25/11/24
18-Nov-14
10
10yrs
EBRD 5.625% 15/03/17
28-Oct-14
5.5
2.4yrs
EBRD 5.75% 19/03/18
19-Sep-14
3
3.5yrs
IDB 6% 05/09/17
05-Sep-14
8.5
3yrs
IDB 6.1% 02/09/16
02-Sep-14
4
2yrs
IDB 8.25% 15/05/17
15-May-07
1.5
10yrs
Issuer
HDFC 7.875% 21/08/2019
Admission to Trading –
admission to the London
Stock Exchange’s markets.
Managed by Exchange
Admissions Team
Contact us
1
Source: Honourable Minister of Finance Jaitley, 13 March 2015 London Stock Exchange
2
Source: Exchequer Secretary to HM Treasury and the Prime Minister’s Indian Diaspora Champion, Priti
Patel, 13 March 2015 London Stock Exchange
Fixed Income Team
London Stock Exchange
Email: [email protected]
Tel: +44 (0)20 7797 3921