The government has welcomed the International Finance Corporation’s (IFC) announcement that it has issued an Indian rupee 10 billion bond in London today (Tuesday 18 November).
It is the largest ever rupee bond to be issued on the London Stock Exchange, and is the longest issue ever for an offshore rupee bond with a maturity of 10 years.
A key part of the government’s long term economic plan is to cement Britain’s position as the centre of global finance, and 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.
The Economic Secretary to the Treasury, Andrea Leadsom said:
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 IFC has started its new $2billion offshore rupee programme by issuing this historic bond in London.
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.
The Exchequer Secretary to the Treasury, Priti Patel, said:
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.
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.
Britain and India already have close economic and financial ties; since 2010 the UK has increased its exports to India by 50% and its imports from India by a third, and it is now the largest investor in India in the G20.
But both countries are determined to build on these links. In July this year the 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 the Economic Secretary to the Treasury Andrea Leadsom 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.
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, which is an important objective of Prime Minister Modi, and one that the UK government supports.