- Dewan Housing Finance Limited becomes the first Indian non-quasi sovereign corporate to issue a five-year Masala Bond and to list on the London Stock Exchange on 25th May 2018
- Sun Global Investments, the London based boutique investment bank, acted as joint lead managers with Barclays Bank, UBS and Yes Bank
Dewan Housing Finance Limited (DHFL), one of India’s largest affordable housing finance providers, has priced its first $150million Masala bond which will be listed on the London Stock Exchange (LSE) on 25th May 2018.
The London based emerging markets specialist boutique investment bank, Sun Global Investments, acted as Joint Lead Managers, along with Barclays Bank, UBS and Yes Bank.
With the issuance, DHFL has become the first Indian non-quasi sovereign corporate to issue a five-year Masala Bond, part of their US$2bn Euro Medium-Term Notes (EMTN) programme.
As an affordable housing finance provider, DHFL seeks to diversify their borrowing portfolio and reduce the cost of borrowing. With the issuance on the LSE, DHFL is keen to offer international investors an opportunity to invest in one of India’s fastest growing sectors – the affordable housing segment – which is also being supported with incentives by the Indian government
Speaking about the Masala Bond issuance and the listing of the LSE, Mihir Kapadia, the CEO of Sun Global Investments has said, “Sun Global Investments is delighted to have worked with DHFL on its debut Masala Bond issuance on the London Stock Exchange. We believe the bonds are an attractive opportunity for international investors to get access to a quality Indian credit.”
A masala bond is a rupee-denominated bond issued to overseas investors. The bonds are settled in US Dollars and are typically subject to English law. Sun Global Investments has built a reputation for acting for issuers in the Masala Bonds space, and had also recently acted as joint lead managers for a number of key transactions in the space.
Sun Global Investments focuses on providing investment banking and capital markets solutions to corporates from Emerging Markets, as well as helping international investors access opportunities in those markets.