NTPC commenced trading of masala bond on London stock exchange

NTPC- India's leading energy conglomerate commenced its trading of green masala bond today, on London Stock exchange. 

The london exchange said,"Delighted to welcome NTPC to open trading today - this is a celebration for first green masala bond by an Indian issuer. 

Delighted to welcome NTPC to open trading today - celebrating #1 green Masala bond by an Indian issuer @LSEplc pic.twitter.com/svZ52BWD0n

— LondonStockExchange (@LSEplc) September 9, 2016

This will not be the first time where NTPC has entered the masala bond market. The company raised Rs 2000 crore from these bonds with 7.48% annual yield, securing high quality investor support from across Europe and Asia. 

It is expected that NTPC will invest the proceeds of the green Masala bond in the renewable energy market as it aims to add more wind and solar power projects to its portfolio.

The move is also expected to  support the Indian government’s ambition to generate 175GW of renewable energy by 2022.

On August 4,  Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group: “NTPC’s landmark independently certified green Masala bond listing, the first Masala bond by an Indian quasi-sovereign issuer, represents another historic event for Indian finance. We are honoured to have been chosen to support NTPC access Rupee-based financing in London’s international capital markets, reinforcing India’s ambitions to generate 175GW of renewable energy by 2022.  

NTPC is not the only who have entered the masala bond market. Housing Development Financial Corp (HDFC) raised Rs 3000 crore from these bonds - the highest since the start of current financial year. 

HDFC has also completed the second issue of masala bonds aggregating to Rs 500 crore. On September 2, the NBFC-giant also announced that it wil be opening third issue of masala bonds aggregating to Rs 1000 crore. 

Other noticeable companies were Indiabulls Housing Finance which raised Rs 1300 crore and Adani Transmission raised Rs 500 crore from these bonds. 

With RBI initiating new measures to boost these masala bonds there many more companies who are looking forward to enter these bond market. 

With offshore investors showcasing good passion towards the rupee-denominated masala bonds,  Export-Import Bank of India (Exim Bank) is also planning to collaborate with SBI Capital Markets in order to support mid-cap companies to raise funds through this bond market. 

NTPC’s bond listing is the latest in a long line of global firsts by Asian issuers on London Stock Exchange.