Chennai: Kerala Infrastructure Investment Fund Board (KIIFB), a State government agency, said it has raised Rs 2,150 crore through its debut masala bond issue.
This is not just the first offshore capital market issuance from a State-level entity from India ever, but also the largest dual currency issue by a sub-sovereign backed entity from entire emerging markets and Asia, KIIF said in a statement.
The transaction was priced on 26 March and saw strong participation from a wide spectrum of investors which included asset managers, insurance companies, pension funds, banks as well as private wealth managers, it said.
The masala bond market till date had seen issuance only from large Indian corporates and public institutions like NHAI and NTPC which are all rated AAA in the domestic market.
‘The successful closing of this deal is significant from this point of view and opens up new avenues for KIIFB. The deal is also significant for the state as the international investors have shown faith in a credit backed by a sub-sovereign from the emerging markets for the first time,’ it said.