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NHAI list Rs.30bn masala bond on SGX

Investors gets opportunity to in Indian prosperity.

Masala bond to support NHAI’s projects.

The National Highways Authority of India (NHAI) has listed its Masala bond on Singapore Exchange, offering investors opportunity to be part of India’s growth story.

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%, which was priced at par.

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% of the investors, private banks 21% and banks 18%. Overall, about 60% came from Asia and 40% from Europe.

Tng Kwee Lian, Head of Debt Capital Markets at SGX, said, “We are pleased to welcome the National Highways Authority of India’s debut Masala bond listing, which has drawn significant interest from diverse investors. 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, IAS 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.

India’s infrastructure is at an inflection point, and it is our 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% of listed offshore bonds by Indian issuers are listed on SGX today, raising about US$66 billion. In the developing Masala bond market, over 70% of the instruments are currently listed on SGX.

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