London: The UK on Tuesday marked the official issuance of the largest-ever Indian bond of Rs 10 billion on the London Stock Exchange (LSE) here aimed at increasing foreign investment in India.
The International Finance Corporation (IFC) had recently announced the Rs 10 billion, named "Masala Bond", as the longest issue ever for an offshore rupee bond with a maturity of 10 years.
As the first rupee bond to be listed on the LSE, it is aimed at increasing foreign investment in India.
"As we continue to strengthen Britain's relationship with India, the IFC's bond issue in London is welcome news, and is testament to our position as a global financial centre," said Indian-origin minister in the UK's Treasury department Priti Patel.
Infrastructure and financial services were two of the main areas identified for partnership between the UK and India during the recent Economic and Financial Dialogue between the Chancellor and Indian Finance Minister Arun Jaitley.
Proceeds raised from the bond will be exclusively invested in India's infrastructure.
"As the government's representative for the Indian diaspora, I am pleased to have Britain front and centre in this investment in India's future," added Patel, the Exchequer Secretary to the Treasury.
IFC is part of the World Bank Group and provides advice and investment to help the private sector find solutions to development issues.
The proceeds of the bond will be used to drive investment in Indian infrastructure.
"A key part of our long term economic plan is to cement Britain's position as the global financial centre. That's why I'm delighted that the International Finance Corporation has started its new USD 2-billion offshore rupee programme by issuing this historic bond in London," said economic secretary to the Treasury Andrea Leadsom.
"This is an important step in strengthening the economic and financial ties that exist between the UK and India, and is exactly the sort of development that I had in mind when I launched the UK India Financial Partnership in Mumbai," she added.
The UK government feels that the IFC's decision to issue this bond in London represents a huge vote of confidence in Britain's strengths as an international financial hub.
In July this year, UK Chancellor George Osborne and Indian finance minister Arun Jaitley met in New Delhi for the seventh UK-India Economic and Financial Dialogue and agreed to deepen collaboration on financial services and infrastructure.
Following these talks, Leadsom had announced the launch of the India-UK Financial Partnership last month.
The partnership is an industry-led coalition that is focussed on promoting trade and investment between the UK and India in financial services.
