Britain yesterday welcomed the International Finance Corporation’s (IFC) announcement that it has issued a 10bn rupee bond in London today, the largest ever rupee bond to be issued on the London Stock Exchange.
It is also the longest issue ever for an offshore rupee bond – dubbed the masala bond – with a maturity of 10 years.
A key part of government policy is to cement Britain’s position as the centre of global finance, and the IFC’s decision represents a huge vote of confidence in Britain’s strengths as an international financial hub.
The economic secretary to the Treasury, Andrea Leadsom said: “I’m delighted that the International Finance Corporation has started its new $2bn offshore rupee programme by issuing this historic bond in London.
“This is… exactly the sort of development that I had in mind when I launched the UK India Financial Partnership in Mumbai.”
The exchequer secretary to the Treasury, Priti Patel, said: “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.
“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.”