KIIFB issues first ever offshore masala bonds worth Rs 21 billion
ROADS & HIGHWAYS

KIIFB issues first ever offshore masala bonds worth Rs 21 billion

The Kerala Infrastructure Investment Fund Board (KIIFB) has floated masala bonds for Rs 21.50 billion, thus creating a landmark in international debt capital markets transactions. Besides, this is not only the first offshore capital market issuance from a state-level entity from India but the largest dual currency issue by a sub-sovereign backed entity from all of the emerging markets and Asia.

According to Anie Jula Thomas, Joint Fund Manager, Kerala Infrastructure Investment Fund Board, “The transaction has seen strong participation from a wide spectrum of investors, including asset managers, insurance companies, pension funds and banks, as well as private wealth managers.”

To date, the masala bond market had reportedly seen issuance only from the large Indian corporate sector and public institutions like NHAI and NTPC, which are AAA-rated in the domestic market. The successful closing of this deal is thus expected to open up new avenues for KIIFB. Also, reports suggest this is the second largest mobilisation in the masala bond market by any public-sector company in India and, in absolute size, the third largest issue by any Indian entity in the history of the bond since the instrument was cleared by the Reserve Bank of India in 2016.

“This is a great achievement for Kerala,” underlines Thomas. “We are further thinking of testing dollar bonds and diaspora bonds.”

Axis Bank and Standard Chartered Bank were reportedly the joint lead managers for the masala bond issuance, while DLA Piper and Cyril Amarchand Mangaldas acted as the international legal counsel and domestic legal counsel, respectively.

- DIKSHA JAWLE

The Kerala Infrastructure Investment Fund Board (KIIFB) has floated masala bonds for Rs 21.50 billion, thus creating a landmark in international debt capital markets transactions. Besides, this is not only the first offshore capital market issuance from a state-level entity from India but the largest dual currency issue by a sub-sovereign backed entity from all of the emerging markets and Asia. According to Anie Jula Thomas, Joint Fund Manager, Kerala Infrastructure Investment Fund Board, “The transaction has seen strong participation from a wide spectrum of investors, including asset managers, insurance companies, pension funds and banks, as well as private wealth managers.” To date, the masala bond market had reportedly seen issuance only from the large Indian corporate sector and public institutions like NHAI and NTPC, which are AAA-rated in the domestic market. The successful closing of this deal is thus expected to open up new avenues for KIIFB. Also, reports suggest this is the second largest mobilisation in the masala bond market by any public-sector company in India and, in absolute size, the third largest issue by any Indian entity in the history of the bond since the instrument was cleared by the Reserve Bank of India in 2016. “This is a great achievement for Kerala,” underlines Thomas. “We are further thinking of testing dollar bonds and diaspora bonds.” Axis Bank and Standard Chartered Bank were reportedly the joint lead managers for the masala bond issuance, while DLA Piper and Cyril Amarchand Mangaldas acted as the international legal counsel and domestic legal counsel, respectively. - DIKSHA JAWLE

Next Story
Infrastructure Urban

Andhra Pradesh to Develop 30,000 Women-Led Enterprises by 2025

The Municipal Administration and Urban Development (MAUD) Department is accelerating efforts to create sustainable livelihoods for women in urban areas, in line with Chief Minister Nara Chandrababu Naidu’s goal of fostering one lakh women entrepreneurs by 2025. Under this initiative, the MAUD Department has set a target to establish 30,000 women-led enterprises across towns and cities in Andhra Pradesh. To support this vision, the department plans to establish Micro, Small & Medium Enterprises (MSMEs) for women in TIDCO housing complexes. Vacant plots across 163 colonies have been earmarked ..

Next Story
Infrastructure Energy

G Kishan Reddy discusses mining expansion, clearances with Chhattisgarh CM

Coal and Mines Minister G Kishan Reddy met Chhattisgarh CM Vishnu Deo Sai on Friday to expedite land acquisition and environmental clearances for mining projects. Reddy, who was on a two-day visit to review operations at South Eastern Coalfields Ltd (SECL), discussed measures to boost mining-led economic growth in the state. Key topics included speeding up land acquisition for mine expansions, obtaining quicker environmental approvals, and setting up integrated rehabilitation and resettlement sites. The minister also highlighted the importance of developing critical minerals in the region, alo..

Next Story
Infrastructure Urban

NITI Aayog's Vision for India's Auto Industry

NITI Aayog has launched the report titled "Automotive Industry: Powering India’s Participation in Global Value Chains," offering a roadmap for the country’s automotive future. Released by Shri Suman Bery, Vice Chairman, the report outlines key strategies to grow India’s automotive sector to $145 bn in component production by 2030. India is currently the fourth-largest automobile producer globally, but with only a modest three per cent share in the global automotive component market. The report emphasises the need to strengthen India’s position through competitive manufacturing, skill d..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?