Indiabulls Housing Finance Re13.3 billion 'masala bond' issue

Overview:

• Indiabulls Housing Finance (Indiabulls), an Indian mortgage lender, has issued $200 million notes dominated in Indian Rupees ('Masala bonds') on the Singapore Exchange.  
• Axis Bank, Bank of America Merrill Lynch, Citigroup, Credit Suisse, Nomura, and YES Bank acted as bookrunners.
• Masala bonds are Indian rupee-denominated bonds issued in offshore capital markets and the Notes are traded and settled in U.S. dollars. Unlike dollar-denominated bonds, the exchange-rate risk of Masala bonds is born by the investor and not the borrower. 
• The company will invest the proceeds in its housing-finance business, particularly in the affordable-housing segment. 
• This is the fourth masala bond issued following the adoption of rules by the Reserve Bank of India that allowed for such bonds. 

Wai Yee Tsang - Journalist

Read our 'Behind The Deal' interview with Gareth Deiner and Rahul Guptan of Clifford Chance here