Fullerton India raises INR 500 Cr from Masala Bonds

Fullerton India made its first such transaction by a domestic non-banking lender when it closed INR 500 crore maiden un-rated rupee bonds (masala bonds).
Fullerton India has priced the 37-month issue at fixed annual coupon of 8.12 percent said the company.
“This is a landmark transaction and enables Fullerton India to tap and develop a new source of funding. The issue matches our asset profile and finances our future growth plans,” Shantanu Mitra, Fullerton India Credit Company managing director said in a statement.
Fullerton India will use the proceeds for on-lending and other financing activities. The company has also said the issue will be listed on the Singapore Stock Exchange.
The masala bond product remains attractive given the deep pool of liquidity available for borrowers, Swiss brokerage Credit Suisse, which was the advisor to the deal.
Masala bonds are rupee-denominated debt instruments supplied by domestic entities in overseas capital markets to increase specific fund requirements and bond investors bear the currency risk.