European Bank issues 'Masala Bond' at London Stock Exchange; Looks to raise Rs 500 crore

European Bank for Reconstruction and Development (EBRD) has issued the sixth rupee or Masala Bond at the London Stock Exchange on Monday. The bonds are likely to raise Rs 5 billion (nearly $73.9 million or Rs 496.85 crore).

The EBRD bond has a 6% coupon with a listed tenure of three years. It is issued under its 35 billion Global Medium Term Note Programme.

The EBRD Masala bonds set a triple-A benchmark for offshore rupee issuances, and it once again demonstrates how this class of bonds can play a leading role in funding India's infrastructure and overall development.

It also highlights how London has become the number one international financial centre for Masala bonds, said Head of Primary Markets (Equity and Debt) India, London Stock Exchange Group (LSEG), Jasmine Arora.

London Stock Exchange Group (LSEG) has a long history of supporting Indian companies seeking international growth capital.

There are currently 55 Indian or India-focused companies quoted on London's markets in addition to 26 Indian Global Depository Receipts (GDRs) listed on London's international order book.

Indian companies have raised equity capital worth $8.1 billion (nearly Rs ​54,458.33 crore) in London and London Stock Exchange has seen 28 rupees or Masala bonds listed in total on its markets that have raised Rs 165 billion.