Canada’s British Columbia has become the first foreign government issuer of masala bonds, with the province successfully raising Rs.5 billion through a rupee-denominated bond on the London Stock Exchange, Canadian Finance Minister Michael de Jong said.
“India is one of the fastest-growing economies in the world and is one of B.C.’s (British Columbia) priority export market partners,” Mr. de Jong said. “We are delighted at the prospect of strengthening and expanding bilateral relations.”
“The masala bond issuance offers British Columbia a means to become well-positioned to profile our confidence in the outlook for India, and to participate in the internationalization of the rupee and India’s economy,” the finance minister added. British Columbia’s bond with a three year tenor was priced to yield 6.62 per cent semi-annually, according to the Canadian government.
“B.C. is also working on a reciprocal arrangement where representatives from the Province of B.C. would work in India” the government said in a statement.
