Union Minister Nitin Gadkari on Thursday invited global investors to participate in the development of India’s infrastructure sector. The Minister of Road Transport and Highways and Shipping made out the invitation in his address to the London Stock Exchange (LSE) after “opening the market for trading”.
In his address to the world’s largest Sovereign Wealth Funds, Global Macro Funds and International Asset Managers, Gadkari pointed out the government’s various development initiatives in the infrastructure sector.
The minister highlighted the development of national highways, ports and inland waterways for passengers and cargo usage under these initiatives.
Besides, the National Highways Authority of India (NHAI) listed its rupee denominated masala bonds at the LSE.
Gadkari told investors that infrastructure Masala Bonds are a “major initiative” being encouraged by the government to attract investors.
Until recently, the ability of Indian companies and other issuers to borrow from the overseas markets was predominantly limited to foreign currencies.
However, the launch of Masala Bonds has given Indian companies from various sectors the ability to access the international capital markets and raise financing without taking on the “attendant” exchange rate risk.
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The NHAI’s initial benchmark issue of Rs 1,500 crore was up-sized to Rs 3,000 crore by 3.00 p.m. (GMT) at a price yield of 7.30 per cent annually. The transaction marks the largest ever five-year issuance and the largest inaugural transaction in masala bond market.
It is expected to reach Rs 5,000 crore subscription by the end of the day’s session.