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Allen & Overy advises on largest-ever corporate masala bond issue

26 April 2017

​Allen & Overy has advised Axis Bank, HSBC, Nomura and Standard Chartered Bank as joint lead managers on the landmark issue of INR33 billion (approximately USD500 million) masala bonds by Housing Development Finance Corporation Limited (HDFC). The bonds were listed on the Main Market of the London Stock Exchange. Masala bonds are denominated in Indian Rupees but payable in foreign currency, typically U.S. dollars. The investor takes the risk of any currency fluctuation during the life time of the bonds.

Allen & Overy was the sole international counsel on the issue, as part of HDFC’s USD750 million MTN programme.
 
HDFC was the first specialised mortgage company in India and is now the largest housing finance company in India in terms of market share based on housing loans.
 
The latest landmark transaction underscores Allen & Overy’s debt capital markets expertise and cements the firm’s position as the leading legal advisor to the majority of masala bond issuances.
 
Commenting on the transaction, Allen & Overy partner Amit Singh said: “We are delighted to have assisted HDFC in this landmark transaction as we continue to advise on some of the most interesting and complex issuances in India and across Asia Pacific. We are also pleased to have helped set up a London listed programme for HDFC which will enable it to access the capital markets on a more opportunistic basis.”
 
Allen & Overy has advised on a number of London-listed issuances recently, including advising on NTPC’s issuance of green masala bonds.
 
The team was led by Amit Singh with support from senior associate David Cameron, and associate Debolina Saha in Hong Kong as well as associates Husayn Reza from Singapore and Sara Jahodova from London.
 
For further information, please contact Nadine Gibbon, nadine.gibbon@allenovery.com, on +852 2974 7090.