London issues largest-ever rupee bond of Rs 10 billion

LONDON: The UK today marked the official issuance of the largest-ever Indian bond of Rs 10 billion on the London Stock Exchange (LSE) here aimed at increasing foreign investment in India.

The International Finance Corporation ( IFC) had recently announced the Rs 10 billion, named " Masala Bond", as the longest issue ever for an offshore rupee bond with a maturity of 10 years.

As the first rupee bond to be listed on the LSE, it is aimed at increasing foreign investment in India.

"As we continue to strengthen Britain's relationship with India, the IFC's bond issue in London is welcome news, and is testament to our position as a global financial centre," said Indian-origin minister in the UK's Treasury department Priti Patel.

Infrastructure and financial services were two of the main areas identified for partnership between the UK and India during the recent Economic and Financial Dialogue between the Chancellor and Indian Finance Minister Arun Jaitley.

Proceeds raised from the bond will be exclusively invested in India's infrastructure.

"As the government's representative for the Indian diaspora, I am pleased to have Britain front and centre in this investment in India's future," added Patel, the Exchequer Secretary to the Treasury.

IFC is part of the World Bank Group and provides advice and investment to help the private sector find solutions to development issues.

The proceeds of the bond will be used to drive investment in Indian infrastructure.