The London Stock Exchange Group (LSEG) has signed a memorandum of understanding (MoU) with YES Bank to collaborate on bond and equity issuance, with focus on developing green infrastructure.

As part of the agreement, YES Bank confirmed that it plans to list a Green Bond of up to $500 million on the London Stock Exchange (LSE) by December 2016.

The bank will look to raise further capital in London, potentially through the listing of GDRs (global depository receipts), as part of its plans to raise $1 billion of equity capital.

The MoU, signed by Nikhil Rathi, CEO of LSE Plc, and Rana Kapoor, Managing Director and CEO of YES Bank, in the same week as the visit of Prime Minister Narendra Modi to the UK, will help strengthen the increasingly vibrant economic and financial ties between the UK and India.

Nikhil Rathi, CEO, London Stock Exchange, and Director of International Development, LSEG, said that LSE is a natural partner for YES Bank in these debt and equity issuances.

Fifty-four Indian companies are listed in London, by primary country of operation, with a combined market capitalisation of £103 billion. As many as 33 are listed on the main market and 21 on AIM (formerly, Alternative Investment Market).

In the last two years, London has established itself as the leading centre for offshore rupee-debt issuance, the so-called ‘Masala Bonds’.

This week, mortgage finance major Housing Development Finance Corporation (HDFC) announced the first Masala Bond programme from an Indian private sector corporate, planning to raise a total of $750 million in London.

In August this year, the IFC, supported by YES Bank, listed a ₹315-crore Green Bond on the LSE.

Srivats.kr@thehindu.co.in

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