Nitin Gadkari, Union Road Transport Minister has launched rupee denominated Masala Bonds in the London Stock Exchange and raised Rs.3,000 crores for National Highways Authority of India(NHAI).
At the launch he said “Our Government is fully committed to bridge the infrastructure deficit in the country”. He further added “We firmly believe that consistent high level public investment in transport infrastructure including Highways, Ports, Airports and Railways is going to accelerate the economic growth in the country.”
“It is interesting to note that the NHAI Masala Bond issue has attracted investors from across the spectrum with Asia contributing 60% of the subscription and the balance 40% coming from Europe.” after noting that the investments had come from first time investors as well.
The bond would yield 7.3% annually and is the largest ever five-year issuance with the largest inaugural transaction in the masala bond market space which sees London Stock Exchange becoming a hub for masala bond. HDFC has already listed its masala bond in LSE and so far in this year alone, there were five masala bond listings and a total of 39 such bonds have been listed in the LSE raising a total of USD 5.4 Billion.
These listing comes after Prime Minister Narendra Modi’s announcement during his visit to London in 2015 where he said an amount of $ 1 billion or more than Rs 6,400 crore worth of masala bond would be raised in the UK.