Monday 1 August 2016 12:57 pm

India's largest mortgage lender issues world's first "Masala bond" in London

The world's first ever "masala" bond has been issued in London today, in what chancellor Philip Hammond described as a major win for the UK economy in the aftermath of the EU referendum.

India's largest mortgage provider, Housing Development Finance Corporation (HDFC), became the first Indian company to list corporate rupee-denominated debt outside of India, with the London Stock Exchange beating rivals to secure the business.

The total offering is worth 30bn rupees (£340m) and has a maturity of three years. It is expected to be the first in a string of such offerings after Prime Minister Narendra Modi signalled over £1bn worth of private sector masala bonds would be issued in London when he visited late last year.

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Philip Hammond said the deal "represents a major vote of confidence in London as the leading global financial centre and is further proof that Britain is a great place to do business."

The chairman of HDFC Deepak Parekh added: "The listing of these bonds on the London stock exchange gives us immense pride. London Stock Exchange continues to distinguish itself by offering a wide range of financial instruments and enjoys unshakeable trust from international investors."