Three other Indian companies — National Agri Authority of India, Energy Efficiency Services Ltd and Indian Renewable Energy Development Agency Ltd — are also planning to raise funds through masala bonds in London.
Officials said the issue of closer financial cooperation between India and the UK figured prominently during talks between Prime Minister Narendra Modi and his British counterpart Theresa May.
The rupee-denominated bonds or masala bonds are instruments through which Indian entities can raise funds by accessing overseas capital markets, while the bond investors hold the currency risk.
In July, housing finance major HDFC had raised Rs 3,000 crore through these rupee-denominated bonds that got over- subscribed by 4.3 times while in August, National Thermal Power Corporation (NTPC) had raised Rs 2,000 crore with the launch of its ‘Green Masala Bond’ on London Stock Exchange.
“Several Indian companies including HDFC and NTPC they have raised masala bonds. Apart from these two Indian companies, there are foreign companies which have raised masala bonds. That is one partnership which is coming up very well.
“There are other Indian companies like Indian Railway Finance Corporation and National Agri Authority of India which are looking forward to raise finance through masala bonds in London,” Joint Secretary (Europe) in the External Affairs Ministry Randhir Jaiswal told reporters while briefing about outcome of the talks.
He said Energy Efficiency Services Ltd and IREDA, which works in the renewable energy area, are also looking forward to raise money through masala bonds.