First Indian fixed income ETF launched in LSE
Sun Global Investments and ZyFin Holdings have announced plans to list the world's first Indian fixed income ETF in LSE.
By ET Bureau | Updated:
MUMBAI: Sun Global Investments and ZyFin Holdings have announced plans to list the world's first Indian fixed income ETF, theLAM Sun Global ZyFin India Sovereign Enterprise Bond UCITS ETF, on the London Stock Exchange.
The announcement comes after Indian Prime Minister Narendra Modi's visit to London, UK to further strengthen financial ties between the United Kingdom and India.
"The LAM Sun Global ZyFin India Sovereign Enterprise Bond UCITS ETFwill, for the first time, offer international investors exposure to a basket of Indian public sector corporate bonds," said a release issued by the company.
The fixed income ETF will be Europe's first physically replicating Indian ETF backed by real underlying securities as opposed to notional securities or derivatives.
Indian Sovereign Owned Enterprises (SOEs) are corporations of national interest which are 51% owned or more by the Government of India. Mihir Kapadia, CEO at Sun Global Investments, said: “This venture shows the versatility, creativity and flexibility of the financial sector in London and the investment opportunities available as a result of the rising economic growth in India.”
"This listing of this fund reflects our view that Indian nominal yields are among the highest in the world."
SOEs play a major role in India's infrastructure development and include the Indian Railways, Power Finance Corporation and Rural Electrification Corporation of India. The launch of the Fund will for the first time allow foreign investors the opportunity to invest in these difficult-to-access but well researched AAA rated Indian companies.
The UCITS compliant ETF provides exposure to corporate bonds which have an average duration of over 10 years and although partly state owned, yield higher than an Indian Sovereign Bond at around 7%.
The announcement comes after Indian Prime Minister Narendra Modi's visit to London, UK to further strengthen financial ties between the United Kingdom and India.
"The LAM Sun Global ZyFin India Sovereign Enterprise Bond UCITS ETFwill, for the first time, offer international investors exposure to a basket of Indian public sector corporate bonds," said a release issued by the company.
The fixed income ETF will be Europe's first physically replicating Indian ETF backed by real underlying securities as opposed to notional securities or derivatives.
Indian Sovereign Owned Enterprises (SOEs) are corporations of national interest which are 51% owned or more by the Government of India. Mihir Kapadia, CEO at Sun Global Investments, said: “This venture shows the versatility, creativity and flexibility of the financial sector in London and the investment opportunities available as a result of the rising economic growth in India.”
"This listing of this fund reflects our view that Indian nominal yields are among the highest in the world."
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SOEs play a major role in India's infrastructure development and include the Indian Railways, Power Finance Corporation and Rural Electrification Corporation of India. The launch of the Fund will for the first time allow foreign investors the opportunity to invest in these difficult-to-access but well researched AAA rated Indian companies.
The UCITS compliant ETF provides exposure to corporate bonds which have an average duration of over 10 years and although partly state owned, yield higher than an Indian Sovereign Bond at around 7%.
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