LSE inks pact with NSE India to create dual listing route for Masala bonds

The London Stock Exchange Group announced a new memorandum of understanding with the National Stock Exchange of India to cooperate on dual listings and the launch of the group’s offerings in India.

London Stock Exchange (LSE) said the MoU is aimed at working together with the National Stock Exchange (NSE) on creating a dual listing route for Masala bonds and explore the launch of ELITE, LSE group’s business support and capital raising programme for private high-growth companies, in India next year.

The MoU was signed in London by Vikram Limaye, MD & CEO of the NSE, and Nikhil Rathi, CEO, London Stock Exchange Plc, and witnessed by MK Das, Principal Secretary to the Chief Minister of Gujarat Vijay Rupani.

Dual listing of Masala bonds would enhance visibility, increase liquidity in secondary markets and enhance the efficiency of price discovery for Masala bond issuers. This would also reduce the cost of raising capital for all issuers and encourage the participation of a wider variety of issuers in the Masala bond market.

London Stock Exchange claims to be the leading international listing venue for Masala bonds, having listed 46 Masala bonds, which have raised over $5 billion equivalent. Masala bonds are typically bonds issued outside India to raise capital for the country but denominated in Indian Rupees, rather than the local currency.

Masala bonds are rupee-denominated bonds issued by Indian institutions abroad to help fund infrastructure and other projects back home and are a route for promoting foreign exchange inflow.

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