Bank is­sues first off­shore ru­pee bond

The Myanmar Times - - International Business -

AN In­dian bank has is­sued the firstever off­shore ru­pee-de­nom­i­nated bond in Lon­don, a land­mark cel­e­brated by of­fi­cials keen to high­light Bri­tain’s in­ter­na­tional busi­ness prow­ess de­spite Brexit.

The Hous­ing De­vel­op­ment Fi­nance Cor­po­ra­tion (HDFC), In­dia’s largest provider of hous­ing fi­nance, raised 30 bil­lion In­dian ru­pees (US$450 mil­lion) by is­su­ing so-called masala bonds.

The three-year bond, which car­ries an 8.33 per­cent yield (in­ter­est rate), was four-times over­sub­scribed, ac­cord­ing to a Trea­sury press re­lease.

“It [the bond] rep­re­sents a ma­jor vote of con­fi­dence in Lon­don as the lead­ing global fi­nan­cial cen­tre and is proof that Bri­tain is a great place to do busi­ness,” said new Bri­tish fi­nance min­is­ter Philip Ham­mond.

Alok Sharma, Bri­tish min­is­ter for Asia, added, “I very warmly wel­come HDFC’s choice of the Lon­don Stock Ex­change to list this world-first ru­pee bond, a clear sig­nal of Lon­don’s stand­ing as the lead­ing in­ter­na­tional fi­nan­cial cen­tre.”

Lon­don’s ma­jor fi­nan­cial cen­tre has al­ready hosted many is­sues of se­cu­ri­ties by for­eign in­sti­tu­tions.

China is­sued its first sale of off­shore ren­minbi in the fledg­ling mar­ket in May, bor­row­ing $457 mil­lion.

Since be­ing ap­pointed last month, prime min­is­ter Theresa May’s gov­ern­ment has been des­per­ate to pro­mote Bri­tain’s busi­ness cre­den­tial on the world stage, fol­low­ing warn­ings by economists that its shock de­ci­sion to leave the Euro­pean Union would harm its econ­omy. –

Photo: AFP

Tesla chief ex­ec­u­tive Elon Musk plans to pro­duce 500,000 elec­tric cars by 2018.

Photo: EPA

Philip Ham­mond says it is a ma­jor show of con­fi­dence.

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