Sun Global Investments, an international financial services firm based in London with specialism in the emerging markets, acted as the Sole Arranger for a new Rupees 10 Billion (around USD 150 Million) 3 year Masala Bond for India’s Housing Development Finance Corporation Limited (“HDFC”).
The bonds were priced at a yield of 8.22% annually.
The issuance is part of HDFC’s US$ 2.8bn Medium Term Notes Programme listed on the International Securities Market of the London Stock Exchange.
A masala bond is a rupee-denominated bond issued to overseas investors. The bonds are settled in US Dollars.
Speaking about the Masala Bond issuance, Mihir Kapadia, the CEO of Sun Global Investments said, “This is another benchmark Masala Bond placing, continuing our association with India’s financial institutions to allow global investors the ability to access high quality Indian credit.”
Commenting on the transaction, Ajay Marwaha and Arjun Kapur, responsible for providing Capital Markets and Corporate Finance advice said, “There is an increasing awareness and interest amongst international institutional investors in issuances from Indian corporates.”
The London Stock Exchange has become a global home for Masala Bonds with a strong track record of supporting rupee denominated bonds to fund India’s rapidly growing economy.
Sun Global Investments focuses on providing investment banking and capital markets solutions to corporates from Emerging Markets, as well as helping international investors access opportunities in those markets.
HDFC is one of the largest providers of mortgages in India. It was established in 1977 and was the first specialised Mortgage Company in India. It is a financial conglomerate with interests beyond the mortgage market.