The Canadian province of British Columbia, which recently became the first foreign government entity to invest in masala bonds, is bullish on the Indian economy and keen to help develop the overseas rupee bond market.
While staying on plans for issuing rupee-denominated bonds, it wants the Government of India to address taxation issues (withholding tax) to make interest payment more viable.
Masala bonds are rupee-denominated bonds issued to overseas buyers, aimed at investments into India's infrastructure needs. These are an important financing alternative for Indian corporates looking to access offshore investors.
Masala bonds, Jong said, offer British Columbia a means to participate in the internationalisation of the rupee and Indian economy.
Jong is leading a trade delegation on a five-day visit to the country to explore investment opportunities and further strengthen trade ties with India. The Canadian province's exports to India jumped from $201 million in 2011 to $623 million in 2015, making India its fifth-largest trading partner.
In September, British Columbia had raised Rs 500-crore rupee-denominated overseas bonds on the London Stock Exchange. The bond raised $75 million (Rs 500 crore) with 6.62 per cent semi-annual yield, securing high-quality investor support from across Europe, Asia and America.
It is an 'AAA'-rated bond by the three major rating agencies and will mature on January 9, 2020. The proceeds of the bond were immediately reinvested in HDFC's second masala bond listing on the exchange.
While staying on plans for issuing rupee-denominated bonds, it wants the Government of India to address taxation issues (withholding tax) to make interest payment more viable.
Masala bonds are rupee-denominated bonds issued to overseas buyers, aimed at investments into India's infrastructure needs. These are an important financing alternative for Indian corporates looking to access offshore investors.
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Addressing the media, British Columbia's Finance Minister Michael de Jong said subsequent issues could be larger in size. He, however, declined to elaborate further.
Masala bonds, Jong said, offer British Columbia a means to participate in the internationalisation of the rupee and Indian economy.
Jong is leading a trade delegation on a five-day visit to the country to explore investment opportunities and further strengthen trade ties with India. The Canadian province's exports to India jumped from $201 million in 2011 to $623 million in 2015, making India its fifth-largest trading partner.
In September, British Columbia had raised Rs 500-crore rupee-denominated overseas bonds on the London Stock Exchange. The bond raised $75 million (Rs 500 crore) with 6.62 per cent semi-annual yield, securing high-quality investor support from across Europe, Asia and America.
It is an 'AAA'-rated bond by the three major rating agencies and will mature on January 9, 2020. The proceeds of the bond were immediately reinvested in HDFC's second masala bond listing on the exchange.