Singapore Exchange welcomes NHAI inaugural Masala bond listing

Hailing NHAI's debut Masala bonds listing, Singapore Exchange said today it has offered investors an opportunity to partake directly in India's growth story through offshore Indian-rupee bonds.

NHAI raised Rs 30 billion in the largest-ever issuance of Masala bonds with a five-year tenor at a coupon rate of 7.3 per cent, which was priced at par.

"Singapore Exchange (SGX) welcomed the inaugural rupee- denominated or Masala bond listing of the National Highways Authority of India (NHAI), an autonomous agency of the Government of India," Singapore Exchange said in a statement.

It said the listing attracted significant interest from an array of investors including first-time participants in Masala bonds.
 

"Fund managers and insurance companies made up 61 per cent of the investors, private banks 21 per cent and banks 18 per cent," the statement said.

Overall, about 60 per cent came from Asia and 40 per cent from Europe.

Tng Kwee Lian, Head of Debt Capital Markets at SGX, said: "By tapping on the international debt capital market, NHAI has offered investors an opportunity to partake directly in India's growth story through offshore Indian-rupee bonds."

Rohit Kumar Singh, Member (Finance) at NHAI, said, "We believe issuances like that of NHAI's help internationalise the Indian rupee and deepen the market for Masala bonds by attracting new sources of liquidity."

Singh said India's infrastructure is at an inflection point, and it is NHAI's responsibility to ensure that we channel investor interest for the benefit of the nation's development. I thank Singapore Exchange for facilitating these efforts."

More than 80 per cent of listed offshore bonds by Indian issuers are listed on SGX today, raising about USD 66 billion, the statement said.

In the developing Masala bond market, over 70 per cent of the instruments are currently listed on SGX.

Singapore Exchange is one of the Asia's leading and trusted market infrastructure, operating equity, fixed income and derivatives markets to the highest regulatory standards.

As Asia's most international, multi-asset exchange, SGX provides listing, trading, clearing, settlement, depository and data services, with about 40 per cent of listed companies and 75 per cent of listed bonds originating outside of Singapore.

SGX is the world's most liquid offshore market for the benchmark equity indices of China, India, Japan and ASEAN and offers commodities and currency derivatives products.