First green rupee-denominated 'masala' bond issued in London

The London Stock Exchange has listed the first green bond to be issued in the offshore rupee markets, with an issue by the private-sector financing arm of the World Bank for India's Yes Bank.

The International Finance Corporation issued the 'masala' bond to fund Yes Bank’s investments in climate change projects, raising 3.15bn rupees (£31m).

Masala bonds are the Indian equivalent of the “dim sum” label given to Chinese offshore issues, while bonds issued inside India are known as Maharaja bonds.

The listing comes as the LSE looks to widen the range of green bonds on its exchange, with a range of new segments launched dedicated to this bond sub-sector.

LSE Group's international development director, Nikhil Rathi, claimed it was "an important day for London".

"As a world first, the successful issuance of this offshore green Masala bond on our markets highlights London’s ability to attract significant capital to both green projects and India, two of today’s most exciting investment opportunities.

"In partnership with the UK Government, we are committed to establishing London as the leading centre for rupee denominated offshore capital raising and we look forward to further collaboration with IFC and Yes Bank, true leaders in green finance."