London Eases Brexit Blues With World’s First Indian Masala BondBy
The first offshore rupee bond was listed in London, easing concerns that the U.K.’s vote to leave the European Union may diminish the city’s global financial role.
Housing Development Finance Corp.’s 30 billion rupees ($450 million) of August 2019 notes will trade on the London Stock Exchange, according to a U.K. government statement on Monday. The bonds, sold by India’s biggest mortgage lender, are the first rupee-denominated notes to be issued overseas by an Indian company.
The listing may open a new growth market for London as companies including NTPC Ltd., India’s largest power producer, and Rural Electrification Corp. have shown interest in selling Masala bonds following changes to Indian regulations last year. It also underscores the city’s position in financial markets amid uncertainty about what Brexit will mean for international issuers and investors.
“It represents a major vote of confidence in London as the leading global financial centre,” U.K. Chancellor of the Exchequer Philip Hammond said in the statement.