Accessing the Global Markets Through London London Stock Exchange - - PowerPoint PPT Presentation

Accessing the Global Markets Through London

London Stock Exchange Fixed Income Market Overview November 2016

Primary Markets Cash Equities Derivatives Fixed Income IDEM RNS MOT X2M Technology Monte Titoli CC&G ORB ExtraMOT London Stock Exchange Derivatives IDEX GlobeSettle SEDOL Unavista Real Time Data Information Services Post Trade Listing and Trading Business Services Academy Events &Studios OFIS Hosting and Connectivity  LSEG is a leading international open access financial market infrastructure group  LSE plc sits within LSEG as the UK Recognised Investment Exchange business.

LSE Group – Depth and Breadth

2

Equities

2,300

Listed companies with aggregate market value of $7 trillion

500+

International companies with a combined market value of $3.7 trillion

$914bn

Raised in last 10 years from 2005 – 2015

Debt

15,000+

Debt securities listed

• n LSE Main Market.

Overall money raised exceeds $4.8 trillion

375+

International government bonds from 34 different countries in 11 different currencies

$338bn+

Raised by sovereign, regional and local governments

£257bn

Total on-exchange turnover in 2015

ETFs

1,300

ETFs and ETPs listed in London from 24 issuers

43%

Market share of European ETF trading

10

RQFII ETFs listed

• n LSE since 2014

giving investors exposure to Chinese A-shares directly.

300%

Growth in European ETF trading volumes in the past 5 years

Heart of the World’s Capital Markets

3

11

IPOs raising over $1bn in London in the last 3 years.

The London Proposition

4

2,074 2,010 2,536 590 1,672 638 364 318 146 29 500 1000 1500 2000 2500 3000 LSEG NYSE NASDAQ SGX HKSE # of Companies* Domestic International

Global Financial Centres Index 20

Source : Factset, GFCI 20

Broad Capabilities Across Many Debt Markets and Currencies

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 % of ETF trading Green Bonds Islamic Finance Dim Sum Bonds High Yield Convertible and Structured Debt ORB Masala Bonds Euro US Dollar British Pound Swedish Krona Australian Dollar Norwegian Krone China Renminbi Japanese Yen Hong Kong Dollar Canadian Dollar Mexican Peso Other ‘Other’ includes 32 different international currencies across 225 bonds, raising a combined £25.2bn

More International Equity Listings Than Any Other Exchange Close to 50% trading of ETF in Europe is done in London

LSE DB ENXT B.Italiana SIX

The London Proposition – Snapshot

795 794 752 748 734 720 719 718 716 713

Top 10 Financial Centres by GFCI 20 rating

5

Access to the deepest pool of international capital in the world Robust regulatory standards and efficient listing process Competitive costs Global hub for innovative products (Green Bonds, RMB, Sukuk) Access to a stable and loyal investor base Quality of advisory community and sell-side research coverage Currency to fund business acquisitions & expand into new markets Broaden the shareholder base Enhance profile & visibility - with customers & suppliers Long term employee incentives

Why consider a Listing on the LSE

Benefits of Listing in London

6

2,012 1,050 576 357 302 301 272 271 252 215 194 London New York Oslo Toronto Paris Amsterdam Tokyo Frankfurt Zurich Stockholm Hong Kong

• UK assets under management totalled a record £6.8

trillion in 2014, the second largest in the world. The UK is also the leading European centre for management of hedge funds, sovereign wealth funds and private equity funds.

• The UK accounts for 37% of global foreign exchange
• trading. More US dollars are traded in the UK than in

the US.

• The UK is the leading derivative centre worldwide,

accounting for 39% of trading in OTC interest-rate derivatives

• The UK has the leading share of trading in many

international financial markets such as cross border bank lending (16%), international insurance premium income (29%) and foreign exchange trading (37%).

International equity assets under management by financial centre 2015 ($bn)

Key Facts:

• London, more than any other financial centre, offers a

long-standing globally oriented investor base

• UK investors have diversified portfolios and are used

to supporting companies’ international development

• Institutional investors in the other major listing venues

tend to be more domestically focused

• Global investment portfolios ensure that investors

appropriately value businesses with a global profile and aspirations

The Largest Investor Pool in the World

$2 trillion invested in international equity out of London

7

Domestic

Domestic Domestic Domestic Domestic Domestic

ROW ROW ROW ROW ROW ROW

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

• London remains the world’s largest equity market, with more international assets under management than any other global financial centre.
• Companies listing in London are able to access overseas investors through widely used and well understood capital raising routes.

Domicile of Investors in LSE-Listed Securities by Region

6%

13%

30%

Domicile of Investors in Selected Exchange’s Listed Securities

51%

A Truly Global Investor Base

Global Investors Buy London-Listed Stocks

8

Asia Pacific

• State Administration of Foreign

Exchange (China)

• GIC
• BNY Mellon Hong Kong
• Blackrock Japan
• Mitsubishi UFJ Trust
• Sumitomo Mitsui
• Aberdeen Asset Management

Asia

• Hang Seng Investment

Europe

• Blackrock
• Legal & General
• Scottish Widows
• Invesco
• M&G
• Standard Life
• AXA
• Societe Generale
• Alecta Pension
• DWS Investment
• Swedbank Robur
• Allianz Global Investors
• BNP Paribas
• Union Investment

Privatfonds GMBH

• Norges Bank

Americas

• Capital Research
• Vanguard
• SSgA Funds
• Fidelity
• Blackrock
• Thornburg Investment
• Artisan Partners
• Alliance Bernstein
• T. Rowe Price
• Caisse de dépôt et

placement du Québec

• Itau Unibanco Brazil

Africa and Middle East

• QIA
• P.I.C South Africa
• Kuwait Investment Authority
• Investec
• CCB Islamic Bank
• Abu Dhabi Investment Authority
• 11
• 10
• 9
• 8
• 7
• 6
• 5
• 4
• 3
• 2
• 1

1 2 3 4 5 6 7 8 9 10 11

London trading hours

Selected Major Institutional Investors in London Listed Bonds

GMT

• Listing in a global market such as London raises a company’s international

profile.

• High international regulatory standards ensure access to a globally oriented

investor base

• LSE is home to the deepest global foreign exchange centre.
• LSE markets are supported by a network of 350 member firms from over 20

countries*,

Raise Your International Profile

London – Global Hub for Investors

9

• London Stock Exchange’s Capital

Markets Days facilitate face-to-face, scheduled dialogue between companies and institutional

• investors. This is usually done to

highlight a specific region or sector focus.

• Our central position within the

London financial markets offers an unbiased arena in which to bring together select groups of companies with the most extensive possible network of appropriate potential investors.

Format

Market Opening: Unique opportunity for all companies, dignitaries and sponsors are invited to

• pen London’s market at 08:00 on the day of the event. This is filmed and can be accessed by

international TV stations broadcasted in their relevant regions. A photographer is also present. Presentations: Welcome by a senior executive of the London Stock Exchange, giving an

• verview of the market/sector. Summary of the IPO process by top City advisors and investors.

Each company will have an opportunity to explain its investment story. 1-2-1 meetings: Highly targeted individual meetings pre arranged by the Exchange. Each company has its own private meeting room the entire day which is fully equipped with all AV capabilities. Maximising exposure: Through the Exchange’s press team from organisations such as the BBC, The Wall Street Journal, the Financial Times, CNBC & Sky News.

London Stock Exchange Capital Markets Days

10

As a result of the recent EU Referendum and subsequent Brexit vote, uncertainty about London’s status as a financial centre has arisen. The international community has responded and shown their commitment to London via a number of high profile transaction announcements, thus proving London is open and ready for business India’s HDFC Lists the First Masala Bond in London Japan’s SoftBank Announces £24bn Takeover of UK’s ARM Holdings GlaxoSmithKline invests £275m for Three New UK Manufacturing Sites

• On 21st July, Housing Development Finance Corporation

(HDFC) issued the world’s first Masala bond issued by an Indian corporate

• The issue was 4.3 times oversubscribed and paves the

way for the opening of the Masala bond market globally to support Indian company and infrastructure financing

• Distribution: 86% taken by Asian investors and 14% by

European investors; Institutional investors made up 82% and private banks 18%

• “This is a milestone transaction for HDFC. We have

achieved our objective of attracting a global pool of capital to diversify our borrowing profile, The positive investor response towards this issuance reinforces the blue-chip positioning of HDFC, and establishes a significant benchmark for Indian companies” said HDFC chairman Deepak Parekh.

• UK technology firm ARM Holdings is to be bought by

Japan's Softbank for £24bn

• ARM Holdings designs microchips used in most

smartphones, including Apple and Samsung models, and employs more than 3,000 people

• Softbank has previously acquired Vodafone's Japanese
• perations and the US telecoms company Sprint. The

$20bn deal was the biggest foreign acquisition by a Japanese firm at the time

• The new deal will be funded by Softbank's own cash

reserves and a long term loan from Japan's Mizuho Bank

• Masayoshi Son, chairman and chief executive of

Softbank, said: "This is one of the most important acquisitions we have ever made, and I expect ARM to be a key pillar of SoftBank's growth strategy going forward

• Despite arguing against Brexit before the referendum,

GSK believes the UK remains an attractive place for making medicines – London currently accounts for nearly 50% of GSK’s worldwide R&D and a third of it’s manufacturing.

• The company recently announced plans to invest a further

£275m into three drug manufacturing sites in Britain, signalling its confidence in the country despite last month's vote to leave the European Union

• "It is testament to our skilled UK workforce and the

country’s leading position in life sciences that we are making these investments in advanced manufacturing here," said Chief Executive Andrew Witty

• Business minister Greg Clark said GSK's move was a

clear vote of confidence in Britain and demonstrated that "there really is no place better in Europe to grow a business"

After Referendum Business As Usual

International Deals Continue

11

London Stock Exchange’s Fixed Income Offering

12

…via 15,000+ Listed debt instruments … raising

£3.5 trillion

…from 59

countries

…in 39

currencies 2570

Int’l issuers..

3% 97% Issuance 70% 30% Trading 13% 87% Amount Outstanding

UK Rest of World

2011

The London Stock Exchange is the global financing hub for fixed income issuers

Bond Primary and Secondary Market Statistics by Region

70% Of global secondary market bond trading takes place in London

Global Home for Raising Fixed Income Capital

13

Centre of Global Fixed Income Trading

5,500 7,000 13,000 22,000 32,500 2001 2002 2005 2008 2011 2015

Bonds Value Traded on Exchanges (USDm)

+18% CAGR (2001-2011) *

LSEG has developed highly liquid and transparent electronic fixed income order books that allow for both primary and secondary access and trading to international investors With changes to regulation including MiFID II and the associated pre- and post- trade transparency requirements, we anticipate that demand for credible secondary market platform trading for bonds will increase

14

Apart from standard issuance we are leading the way in new fixed income products

Green Bonds

• Retail and wholesale markets, offering the

choice of trade reporting, end-of-day pricing and continuous quoting

• Unique and comprehensive specialist
• ffering for green bonds
• Dedicated green segments
• Industry Affiliations:
• ICMA GBP Observer, Social Stock

Exchange, Climate Bonds Initiative, City of London Green Finance Initiative Islamic Finance

• LSE is a key global venue for the issuance
• f Sukuk
• There are over 20 banks in London

providing Islamic financial services, more than any other European country

• Unique and comprehensive specialist
• ffering for sukuk
• Dedicated sukuk fixed income segments

Dim Sum Bonds High Yield

• LSE’s PSM accommodates all types of debt

securities including high yield bonds in any denomination under a wholesale regime

• The PSM is a global listing venue attracting

investment from many other locations in Europe, Asia, Latin America and Australia Convertible and Structured Debt

• LSE’s PSM accommodates all types of debt

securities including convertible bonds in any denomination under a wholesale regime

• Many investors can only buy debt

instruments listed on a Recognised Investment Exchange. LSE is well positioned to provide efficient and well- regulated markets for both bond issuers and investors ORB

• LSE’s flagship retail

market - both primary issuance and secondary trading of retail denominated bonds

• Retail bonds can also

be held in an ISA, which is a tax-free savings account Masala Bonds

• LSE is a key global venue for the issuance
• f Masala bonds
• Listing venue for the world’s first Masala

bond from an Indian corporate

• Unique and comprehensive dedicated
• ffering for Masala bonds
• LSE is a key global venue for the issuance
• f Dim Sum bonds
• Unique and comprehensive dedicated
• ffering for Dim Sum bonds

Cutting Edge Financial Products

15

Main Market Professional Securities Market Applicable UK Listing Rules

• Chapters 2 and 17 of UK Listing Rules
• Chapter 4 of UK Listing Rules

Financial Records

• At least two years trading records and independently

audited accounts consistent with the International Financial Reporting Standards (IFRS)

• Local GAAP can be used

Listing Documents

• Full prospectus
• No full prospectus required
• Listing Particulars adequate

Transferability

• The debt securities subject to the listing must be freely transferable

Issue Size

• The market capitalisation of the class of the debt securities to be listed must be at least £200,000

Listing of the Whole Debt Class

• All debt securities of the same class should be listed

Designation

• Wholesale & Retail Bonds
• Wholesale Bonds only, although retail denominated

bonds can be issued under the wholesale regime

A Choice of Debt Markets

16

Listing & Admissions Process

17

Smooth Listing Process

UK debt markets’ high standards ensure credibility amongst the global investor base. The UK Listings Authority (UKLA) has a reputation for its a robust and balanced approach to implementing the listing rules whilst maintaining efficiency of the listing process.

• Listing process is a two pronged approach between

LSE and UKLA

• UKLA committed to efficient turn around times:
• Up to 4 clear working days after first

submission

• 2 clear working days** for subsequent

submissions

• UKLA checklist can be used by issuers prior to

submission

• One-off £2,000 UKLA Vetting fee is applied (no extra

annual or application fees)

Typical transaction timeline

UKLA

Documentation Approved and Listing Granted Listing Effective Listing Application

LSE London Listing

Application for Admission to Trading Admission Granted Trading can Begin

Initial review completed

18

Passporting a Prospectus

Easy process to dual list in London via passporting (when the bond prospectus is already approved in another EEA jurisdiction)

For existing notes to be admitted to trading on the regulated market of the London Stock Exchange, the issuer would have to undertake the following steps Action Comment Step 1 Obtain a passport from the existing EEA Competent Authority by submitting a Notification Request Form. The existing EEA Competent Authority has three working days to notify the UKLA that it has approved the base

• prospectus. Once this has occurred, the

issuer can contact the UKLA to apply for the notes to be listed in the UK. Step 2 Submit the security to the UKLA Official List alongside the passport and make some small additions to the document, for example confirm the planned listing on London Stock Exchange in the prospectus. Step 3 Apply to the London Stock Exchange for admission to trading. This involves submitting a completed Form 11 and an electronic copy of the relevant prospectus.

For new notes to be issued under the existing programme to be admitted to trading

• n the regulated market of the London Stock Exchange, the issuer would have to

undertake the following steps: Action Comment Step 1 Send a notification request form in relation to the base prospectus to the existing EEA Competent Authority, who will inform the UKLA If this has already been done for previous admission, there is no need to do it a second time. Step 2 Send an application for admission

• f securities form and a listing rules

checklist to the UKLA2. Note that the application for admission

• f securities form has to be sent for

each new series of notes, the listing rules checklist only needs to be sent the first time an issuer is applying to the

• fficial list of the UKLA.

Step 3 Apply to the London Stock Exchange for admission to trading. This involves submitting a completed Form 11 and an electronic copy of the relevant prospectus. Ensure that the relevant final term specifies, that the notes will be admitted to trading in London. That is the only drafting difference.

• Passporting involves a prospectus approved by the issuer's Home Competent authority in the EEA being accepted by another EEA member state as the basis of a

public offer or admission of securities to a regulated market.

• In this way, issuers with bonds listed elsewhere can gain a London listing quickly and efficiently.

19

Admission Process

For admission, the documents that we need are1:

• Signed Form 1 with EU sanctions complete
• Signed Board Minutes
• Prospectus
• UKLA approved letter
• Confirmation of the note being issued (usually the day before)

Also as soon as possible in the admission process, it is necessary to arrange for the creation of the relevant trading codes:

ISIN/SEDOL ISINs are normally allocated by the country of domicile of the issuer. London Stock Exchange is then responsible for allocating a SEDOL code, which is a unique instrument identifier. Email the Pricing Supplement(s) to smfnewissues@lseg.com and allow 48 hours for these to be assigned. TIDM A Tradable Instrument Display Mnemonic (TIDM) is the three or four character identifier specific to London Stock Exchange. Issuers may request a specific TIDM, which will be issued, provided it is not already in use or reserved. Once reserved, these are held for a period of six months. Requests should be made to the Admissions Team by emailing the issuer name and the instrument name, making it clear that it is a TIDM request, to admissions@lseg.com

information included)). All final documentation needs to be with LSE Admissions by 4pm the day before admission.

20

International Cost Competitiveness

Competitive Fee Structure:

• LSE fees are calculated on a sliding scale, based on issue size and type of issue.
• No fee is payable for setting up an MTN program.
• No annual fee is payable in respect of debt securities on the London Stock Exchange’s markets

Face Value (£m) Fee (£) Greater than

• r equal to

Less than 50 2,500 50 100 4,000 100 and above 4,200 Face Value (£m) Fee (£) Greater than

• r equal to

Less than 25 300 25 50 1,750 50 100 2,700 100 500 3,600 500 above 3,650

Eurobonds & International Issuers Issuers under debt issuance programs

21

Masala Bonds

22

“Today, we have outlined a bold and ambitious vision for

• ur strategic partnership, and the decisions we have

taken today reflect our firm commitment to pursue it and the confidence to achieve it. Indeed, the outcomes today have shown that we have already taken our relationship to a new level.” Narendra Modi “It’s a real opportunity to open a new chapter in the relationship between our two countries.” David Cameron “We will also increasingly raise funds in London’s financial market. I am pleased that we will issue a railways rupee bond in London stock market. This is – for this is where the journey of Indian Railways had begun.” Narendra Modi “We will work together with the British Government, industry, and the financial market to deepen our relationship and harness that interest in India’s infrastructure. Very soon, these bonds will become strong instruments for engagement between our financial markets.” Narendra Modi

Source: Joint press release UK-India Summit, 12 November 2015, https://www.gov.uk/

“रृपी ब ॉः ड अपने आप मेः भारत की आरॎथिक सॉःपनॎनता का एक महतॎवपूरॎि ममश्ऱरॎ है और हहॉःदुसॎतान क े हर नागररक को इसको गौरव क े रृप मेः देखना चाहहए और इसको उजागर करना चाहहए, तभी तो भारत की ताकऽत बढऽती है“

Narendra Modi

India – UK Finance Partnership

23

“Strengthening the economic and financial links between India and the UK is a key priority for the government, and a stable and competitive financial services industry in the UK is an important asset to the UK and to the rest of the world.” Priti Patel, Exchequer Secretary to HM Treasury and the Prime Minister’s Indian Diaspora Champion “London Stock Exchange is one of the premier hubs globally for any financial activity” Arun Jaitley, Honourable Minister of Finance London Stock Exchange has more Indian companies listed on our equity and debt markets than any other international market and provides cutting edge technology to some of India’s leading exchanges. India’s most dynamic companies have access to the world’s largest pool of institutional investment capital here in London.” Xavier Rolet, CEO, LSEG

Roundtable with Railways Minister, 30 October 2015 13 March 2015, international investors roundtable, LSE 18 Nov 2014, IFC Market Open London Stock Exchange

LSEG at the heart of India-UK EFD

High profile repeat

issuance from

SSA’s

6

New Masala bonds listed in 2016 YTD

4

New Masala bonds listed in 2015

14

INR bonds currently listed

33

INR bonds listed historically

24

Hosted by the London stock Exchange, the inaugural India Forum of the Green Infrastructure Investment Coalition (GIIC) brought together European institutional investors, Indian green infrastructure developers and financiers, development banks and perspectives from both governments.

• The aim of the event was to allow investors to understand the various ways of gaining exposure

to this quickly growing asset class.

• The Forum covered India’s goals, policy measures being implemented, and investment
• pportunities becoming available.
• We invited participants to present 5 year pipelines of green investment opportunities, including

bonds and equity, with ticket sizes of $100 million and over.

• India has huge green infrastructure plans: a target of 175 GW of renewables by 2022, a ramp-

up of rail transport, energy efficiency projects and development of 100 “smart cities”. Speakers included:

• Sir Roger Gifford, Head of London’s Climate Finance Initiative
• Dr Rathin Roy, Director NIPFP
• Alok Sharma, MP UK Government Infrastructure Envoy
• Pierre Ducret, Special Advisor on Climate Change COP22
• Ajungla Jamir, First Secretary at India High Commissioner
• Sean Kidney, CEO Climate Bonds
• Abhay L. Bongirwar, Executive Director IDBI

25

June 2016 India Forum

April 2016 Visit of Minister Piyush Goyal

“Minister of Power and Coal Piyush Goyal, who is on a two-day visit to the UK, visited the London Stock Exchange. During the visit, Goyal met officials from Natgrid and UK Power Network and explained about his plans and vision to increase the power generation in India and renewable energy scale up plan has been drawn up to 2022. According to sources, Goyal emphasised the need for the developed world to show its commitment towards climate change by putting money in climate finance.” Business Standard, 21 April 2016 “In an attempt to raise resources for India’s ambitious green energy programme, state-run firms, such as NTPC Ltd, Neyveli Lignite

• Corp. Ltd, Power Finance Corp. Ltd (PFC), Rural Electrification Corp. Ltd (REC) and PTC India Ltd, plan to issue masala bonds to

raise $1 billion, according to a government statement released on Wednesday.” VCCIRCLE, 20 April 2016 26

London Stock Exchange is now the largest Masala bond centre globally. Ever since the first Masala bond listing in London in 2007, we are firmly committed to developing long-term strategic partnerships with issuers to ensure the success of this financing stream and help Masala bonds evolve from specialist to a mainstream asset class.

“IFC issued the bonds in London to leverage the city’s standing as a premier financial centre. The vast majority of investors are European insurance companies.” , Nov 2014, IFC press release for INR 10bn, 10year 6.3% bond “Addressing climate change is a priority for IFC in India. IFC’s green Masala bond demonstrates the powerful role

• f capital markets in mobilizing

savings for climate finance— and a listing in London allows us to attract the widest possible range of international investors“ August 2015, IFC press release for INR 3.15bn Green Masala Bonds

13 August 2015, IFC & Yes Bank Market Open, LSE

London Stock Exchange’s Global Reach

In July 2016, London Stock Exchange welcomed the world’s first Masala bond issued by an Indian corporate. The landmark INR30bn 37 month bond with a yield of 8.33% from Housing Development Finance Corp (HDFC), was 4.3 times oversubscribed and paves the way for the opening of the Masala bond market globally to support Indian company and infrastructure financing

"London Stock Exchange continues to distinguish itself by offering a wide range of financial instruments and enjoys unshakable trust from international investors.” Chairman Deepak Parekh, HDFC press release for INR30bn 37month 8.33% bond 27

Bharti Airtel Zyfin & Sun Global Yes Bank SBI-LSEG IRFC Description Issuance of maiden sterling bond in London Listing the world’s first India fixed income ETF on London Stock Exchange MoU to foster joint collaborations on bond and equity issuance in London, with a strong focus on Green Infrastructure Finance FTSE Russell and State Bank

• f India partner to create

Indian Bond Index Series. Issuance of offshore Rupee denominated bonds in London Size £500m

• Up to $550m Green bonds

$1bn equity

• Announcement

“The bond issue will help Bharti extend maturities and diversify investor base on its debt portfolio” “LSE is the broadest ETF market in Europe. This ETF will give international investors access to the Indian fixed income market, which is worth USD 1.3 trillion and is a vital source of finance for the infrastructure sector” “Both financial institutions will leverage their complementary strengths to facilitate access to capital raising in London and India for Indian entities and will work jointly on the development

• f a wide range of new
• products. Through this

collaboration both parties also demonstrate their commitment to the promotion of products and platforms supporting the use of Green Finance” “State Bank of India (SBI), India’s largest Commercial bank, has teamed up with FTSE Russell to launch the FTSE TMX SBI India Bond Index. This index addresses the long felt interest of investors to have a credible benchmark for Indian debt.” “We are set to launch a railway bond in London. It is appropriate as the journey of Indian Railways started in he UK”

LSEG’s India Partnerships

28

The Current Status of the Masala Bond Market: London Stock Exchange listings

Source: Bloomberg and LSEG. Averages are arithmetic means of one or more coupons. This does not constitute investment advice. Includes supranationals

…raising

$2.19bn

in total

…from 6

issuers…

14

Masala bonds currently listed…

…33

Masala bonds listed historically…

Maturities

Maturities showing issuance volumes across tenors

Trading

A range of secondary trading markets available

Coupons

Financing possible at attractive issuance yields



Order book trading



Continuous market making



End-of-day pricing



Trade reporting

6.08% 6.20% 6.45% Average 3yr 5yr Average Coupon (active Masala bonds) 12% 75% 11% 2% Issuance by Maturity (%) < 3yrs 3-5yrs 10-15yrs 15yrs+

29

Masala Bond Case Studies

30

British Columbia NTPC HDFC Axis Bank EBRD IFC Transaction Details Issue Date 09 September 2016 10 August 2016 21 July 2016 01 June 2016 4 March 2016 21 March 2016 / 10 Aug 2015 / 18 Nov 2014 Issue Size INR 5 bn INR 20 bn INR 30 bn USD500m INR 5bn INR 2bn / INR 3.15bn / INR 10bn Coupon 6.6% 7.375% 7.875% 2.875% 6.4% 7.1% / 6.45% / 6.3% Maturity 40 months 5 year 37 months 5 year 3 year 15 year / 5 year / 10 year Issuer Profile Rating AAA / Aaa BBB-(emr)* AAA/A1+** Baa3 / BBB- AAA / Aaa AAA / Aaa

Recent Masala Issuance

31

Company Details

Company NTPC Ltd Rating BBB-(emr)* Sector Utilities Market PSM

Transaction Details

Issue Date 10 Aug 2016 Issue Size INR 20 billion Yield at issue 7.48% Coupon 7.375% Maturity 5 years

Company profile

• NTPC is India’s largest power utility company. The

company’s headquarters are in New Delhi and its core business involves generating and selling electricity to state-owned power distribution companies and State Electricity Boards in India.

• It was founded by Government of India in 1975

and in May 2010 was conferred Maharatna status.

• NTPC established a Green Bond Framework

which has been independently certified by Climate Bonds Initiative, a partner of London Stock Exchange and adheres to the ICMA Green Bond Principles.

• Post issuance, KPMG will provide assurance that

the nominated projects are in alignment with the company’s Green Bond Framework.

Debt issuance story

• The proceeds of the bond will be invested to

support wind and solar projects complementing India’s government ambition to generate 175GW

• f renewable energy by 2022.
• The deal was oversubscribed, with books in

excess of INR 29 bn from more than 60 accounts.

• The green certification gave NTPC a global boost

and, as a result, better pricing. Notable was NTPC's investor diversification internationally and the company’s ability to attract participation by dedicated green bond funds from Germany and Denmark into the deal.

• Joint Leads: Axis Bank Ltd, Hong Kong &

Shanghai Banking Corporation, Standard Chartered Hong Kong, Mitsubishi UFJ Financial.

Geographical Distribution

Asia 70% Europe 30%

Distribution by Investor

Banks 15% Fund managers/insurers/ sovereign wealth funds 80% Private Banks 5%

NTPC lists world’s first green Masala bond by an Indian issuer on London Stock Exchange

• ffering from India"

32

Company Details

Company Housing Development Finance Corporation (HDFC) Rating AAA/A1+* Sector Financials Market Main Market

Transaction Details

Issue Date 21 Jul 2016 Issue Size INR 30 billion Coupon 7.875% Yield at issue 8.33% Maturity 37 months

Company profile

• HDFC is a leading provider of Housing

Finance in India.

• The company also has a presence in

banking, life and general insurance, asset management, venture capital and education loans.

• Founded in 1977 as the first specialised

mortgage company in India.

• HDFC’s distribution network spans 396
• utlets which cater to approximately 2,400

towns and cities spread across India.

Debt issuance story

• Represents the world’s first Masala bond

issued by an Indian corporate.

• The issue was 4.3 times oversubscribed

reflecting strong investor sentiment and paves the way for the opening of the Masala bond market globally to support Indian company and infrastructure financing.

• The final order book was INR 86.73 billion

from 48 accounts with final allocations being well-diversified.

• Joint Leads: Axis Bank Ltd, Credit Suisse and

Nomura.

HDFC is first ever Indian corporate to list Masala bond, chooses London Stock Exchange for landmark issuance

“London Stock Exchange continues to distinguish itself by offering a wide range of financial instruments and enjoys unshakable trust from international investors. This is a milestone transaction for HDFC. We have achieved our objective of attracting a global pool of capital to diversify our borrowing

• profile. The positive investor response towards

this issuance reinforces the blue-chip positioning of HDFC, and establishes a significant benchmark for Indian companies” Deepak Parekh, Chairman, HDFC

Geographical Distribution

Asia 86% Europe 14%

Distribution by Investor

Asset Managers 81% Private Banks 18% Banks 1%

33

Issuer Details

Company Province of British Columbia Rating AAA / Aaa Sector Government Market Main Market

Transaction Details

Issue Date 09 Sep 2016 Issue Size INR 5 billion Coupon 6.6% Maturity 40 months

Issuer profile

• The Canadian Province of British Columbia

becomes the first foreign government entity to issue a Masala bond, choosing London for its listing.

• With this issue, the Province continues its

reputation as an innovator and leader amongst its AAA-rated peers in diversifying sources of funding.

• “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.” , British Columbia Minister of Finance Michael de Jong.

Debt issuance story

• The British Columbia bond raised INR 5 billion

(c. $75 million) with 6.62% semi-annual yield, securing high quality investor support from across Europe, Asia and America.

• The issue was more than 3 times
• versubscribed.
• The proceeds from the bond will be put to work

in India’s housing industry by HDFC, one of India’s leading banking and financial services companies.

• Joint leads: HSBC and TD Securities.

Geographical Distribution

Americas 56% EMEA 30% Asia 14%

World’s first Masala Bond by a foreign government entity on LSE

“This bold move by the Government of B.C., to be the first sovereign government to issue a Masala bond, highlights the confidence that B.C. and Canada are showing in the Indian economy.” Nadir Patel, High Commissioner of Canada to India Source: Bloomberg, GlobalCapital, LSEG database, September 2016

34

Company Details

Company Axis Bank Dubai Rating Baa3/BBB- Sector Financials Market Main Market

Transaction Details

Issue Date 01 Jun 2016 Issue Size USD 500 million Coupon 2.875% Yield at issue 2.998% Maturity 5 years

Company profile

• Axis Bank is India’s third largest private bank.
• “Axis Bank launched and successfully

completed the first certified Green Bond issue, the issue we are pleased to list on the London Stock Exchange today. The encouraging response to this issue is reflective of the keenness of global investors to promote and support a sustainable environment and also acknowledge Axis's credibility in this space. The ease of the listing process and breadth of investors seen in this bond issuance demonstrates the role London Stock Exchange can play in supporting India's financing needs.” Managing Director & CEO of Axis Bank, Shikha Sharma

Debt issuance story

• The proceeds of the bond will be invested in

green energy, transportation and infrastructure projects, reinforcing India’s commitment to produce 175,000 MW of renewable power by 2022.

• Lowest coupon ever for a 5-year USD bond by

any Indian private sector issuer.

• First ever USD green and 144A bond by an

Indian private sector company with 21% of the investor base being “green” investors.

• Joint Leads: Axis Bank SGP, BAML, Citigroup

Global Markets SGP, Credit Agricole CIB HK, HSBC, JP Morgan Securities Plc, Standard Chartered Bank.

Geographical Distribution

Asia 48% Europe 25% U.S. 16% Middle East 11%

Distribution by Investor

Banks 30% Asset Managers 55% Private Banks 5% Sovereign wealth funds/pension funds 10%

India’s first internationally listed certified green bond

“When an Indian company lists securities at LSE, it gets direct access to many European and Scandinavian investors. The ease of listing too attracts many issuers. Besides, LSE remains a financial hub even after Brexit referendum” Sidharth Rath, Group Executive, Axis Bank

35

Company Details

Company European Bank of Reconstruction and Development (EBRD) Rating AAA / Aaa Sector Supranational Market Main Market

Transaction Details

Issue Date 4 Mar 2016 Issue Size INR 5 billion Yield at issue 6.4% Maturity 3 years

Company profile

• EBRD is a multilateral developmental

international financial institution founded in 1991 that uses investments as a tool to build market

• economies. Initially focused on the countries of

the former Eastern Bloc it expanded to support development in 30 countries from central Europe to central Asia.

• The EBRD is owned by 65 countries and two

intergovernmental institutions (EU and EIB). It maintains a close political dialogue with governments, authorities and representatives of civil society and works in cooperation with international organisations such as the OECD, the IMF, the World Bank and UN specialised agencies.

Debt issuance story

• The European Bank for Reconstruction and

Development has been a key issuer of Indian Rupee denominated bonds in London.

• EBRD has raised more than $729m equivalent
• n the London market, through six INR

denominated issues with tenors of one, two, three and four years.

• Sole arranger: HSBC.

Using offshore rupee bond issuance as part of a multi- currency EUR 35bn GMTN Programme

36

• Inter-American Development Bank was the first

issuer of an Indian Rupee denominated bond in London in 2007. This was the first ever non- deliverable Indian rupee-denominated bond, cash settled in dollars using prices in the non deliverable forward market for Indian rupees.

• Over the years, IDB has raised more than $275m

equivalent on LSE, through 6 INR denominated issues with tenors of one, two, three and ten years.

• The IDB, established in 1959, is a supranational

financial institution that uses the resources it raises in capital markets to support programs that promote development and economic growth while respecting and protecting the environment.

• Key initiatives for the progress of its borrowing

member countries include the modernization of infrastructure, development of alternative energy sources, and universal access to clean water and sanitation.

ISIN Issue Date Maturity Tenor Cpn INRbn XS1016451699 Jan-14 Jul-15 1.5 7.125% 1.00 XS1101962618 Sep-14 Sep-16 2.0 6.100% 4.00 XS0882569568 Feb-13 Jul-15 2.5 5.000% 2.00 XS1103713654 Sep-14 Sep-17 3.0 6.000% 8.50 XS0573957296 Jan-11 Jan-14 3.0 4.750% 17.00 XS0842193475 Oct-12 Oct-15 3.0 4.750% 1.04 XS0495010562 Mar-10 Mar-14 4.0 3.000% 2.00 XS0299574953 May-07 May-17 10.0 8.250% 1.50

37

• In 2014, IFC moved its Treasury function to London.
• In November 2014 International Finance Corporation issued a ten year, 6.3% triple-A rated masala bond,

raising Rs 10 billion and paved the way to increase foreign investment in India, mobilising international capital markets to support a subsequent infrastructure bond issuance by Axis Bank.

• In April 2015, IFC issued a three-and-a-half year, 6.45% bond that raised Rs 16 billion – the largest ever

Rupee denominated bond issued outside India.

• The program is reflective of the strong partnership between India and IFC. In 2014 IFC committed $1.4 billion

in India along the strategic priorities of promoting inclusive growth, particularly in India’s low income states, addressing climate change, and supporting economic integration.

38

5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 3 5 7 9 11 13 15

Yield Maturity (years)

IFC Offshore Rupee Yield Curve

IFC Offshore bond level

IFC had been issuing in the offshore markets at approximately 90 -190 bps below the Government of India onshore yield (at time of issuance). Through the Masala bond program, IFC has been able to offer clients in India attractive levels of funding and has invested INR 55.1Bn ($860mm equivalent) in the Indian private sector.

39

Company Details

Company International Finance Corporation (part of World Bank Group) Rating AAA / Aaa Sector Supranational Market Main Market

Transaction Details

Issue Date 21 Mar 2016 Issue Size INR 2 billion Yield at issue 7.1% Maturity 15 years

Company profile

• IFC is one of the world’s largest financiers of

climate-smart projects for developing countries, investing about $11 billion in long-term financing

• ver the last decade for renewable power,

energy efficiency, sustainable agriculture, green buildings and private sector adaptation to climate change.

• “IFC’s 15-year masala bond demonstrated long-

term investor confidence in India’s growth,” said Navtej Sarna, Indian High Commissioner to the United Kingdom. “Innovative financing mechanisms like IFC’s Masala program are critical to mobilize long-term funding for India’s infrastructure expansion.”

Debt issuance story

• Proceeds of the bonds will be used to advance

private sector development in India.

• It marks the longest-dated offshore rupee bond to

be issued globally.

• The latest 15-year bonds mark the latest step in

IFC’s efforts to extend the yield curve and set a pricing benchmark for future issuances with similar maturities. IFC has previously issued Masala bonds in maturities of three, five, seven and ten years.

• Sole arranger: JP Morgan.

Using offshore rupee bond issuance to finance private sector development in India

Source: IFC press release, LSEG database, March 2016

40

Company Details

Company International Finance Corporation (part of World Bank Group) Rating AAA/Aaa Sector Supranational Market Main Market

Transaction Details

Issue Date 10 Aug 2015 Issue Size INR 3.15 billion Yield at issue 6.45% Maturity 5 years

Company profile

• IFC is one of the world’s largest financiers of

climate-smart projects for developing countries, investing about $11 billion in long-term financing

• ver the last decade for renewable power,

energy efficiency, sustainable agriculture, green buildings and private sector adaptation to climate change.

• “Addressing climate change is a priority for IFC in
• India. IFC’s green Masala bond demonstrates

the powerful role of capital markets in mobilizing savings for climate finance—and a listing in London allows us to attract the widest possible range of international investors. Adding the rupee as a new green bond currency also supports our goals to strengthen this important asset class.”

Debt issuance story

• Proceeds from the offering used to finance a

green bond issued by Yes Bank, one of India’s largest commercial banks. Yes Bank invested the proceeds of its bond in renewable energy and energy efficiency projects, mainly in the solar and wind sectors.

• Under its $3 billion offshore rupee Masala bond

program, IFC has issued bonds worth over 103 billion rupees ($1.66 billion) in a range of tenors, building a triple-A yield curve and attracting new investors to the London offshore rupee market.

• Sole arranger: JP Morgan.

Using Green offshore rupee bond issuance to finance Indian infrastructure

Source: IFC press release, LSEG database, August 2015

41

Company Details

Company International Finance Corporation (part of World Bank Group) Rating AAA / Aaa Sector Supranational Market Main Market

Transaction Details

Issue Date 18 Nov 2014 Issue Size INR 10 billion Yield at issue 6.3% Maturity 10 years

Company profile

• IFC, a member of the World Bank Group, was

established in 1956 and it’s owned 184 member

• countries. It finances and provides advice for private

sector ventures and projects in developing countries in partnership with local private entities.

• IFC is the largest global development institution

focused exclusively on the private sector in developing countries.

• IFC’s mission is to allow companies and financial

institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities.

Debt issuance story

• The bonds were priced 200bps inside equivalent

bonds issued by the Indian Government.

• The bonds’ principal amounts are linked to the

Indian rupee exchange rate. U.S. dollar proceeds from the bonds will be converted to rupees in the domestic spot exchange market.

• Vast majority of investors were European

insurance companies.

• Proceeds from the offering used to support an

infrastructure bond issuance by Axis Bank.

• Sole arranger: JP Morgan.

Source: IFC press release, LSEG database, November 2014

Using offshore rupee bond issuance to finance Indian infrastructure

42

Appendix (general slides)

43

Criteria Main Market

Security type Fixed Income Official list status Listed Regulated EU Regulated Sponsor / Nomad Not Required Corporate governance A Code Regulatory supervision UKLA Legislation LR/PD/TD/MAR/A&Ds Types of companies Large multinationals Premise Debt issuers seeking high profile listing Eligible investors Professional and retail

Main Market

Description  Flagship Market: The London Stock Exchange’s Main Market is the world’s most international market for the admission and trading of equity, debt and

• ther securities, providing access to Europe’s deepest capital pool

 Located at the heart of the world’s leading financial centre: The ideal home to over 2,600 debt issuers from 60 countries, including many of the world’s largest, most successful and most dynamic companies  High Profile Listing: Exposes debt securities to a wide audience of financial market participants, boosting the profile of the listing  High regulatory standards: Underpinned by London’s balanced and globally-respected standards of regulation and corporate governance, the Main Market represents a badge of quality for every company admitted to and traded on it and an aspiration for many companies worldwide  Broad range of eligible investors: The Main Market’s status as a listed and regulated market offers flexibility both to issuers and holders of debt finance. Its focus, therefore, is on the broadest range of institutional and retail investors  Liquidity: Offers a number of secondary market order-book solutions while providing access to London’s deep pool of international eurobond liquidity  Cost saving: Offers cost savings as London is the only major European listing venue with no annual fees to debt issuers

44

Criteria PSM

Security type Fixed Income Official list status Listed Regulated MTF Sponsor / Nomad Not Required Corporate governance Domestic Regulatory supervision UKLA Legislation LR/LP/MAR/A&Ds Types of companies Emerging Markets Premise Debt issuers using local GAAP Eligible investors Professional only

Description  Lighter Regulation: Outside scope of EU Prospectus and Transparency Directives  No EU Passport: Designed to meet financing needs of issuers who do not require EU passport  Alternative Accounting Standards: Offers alternative for issuers not wishing to prepare financial information to IFRS, and ability to report under national GAAP  Lower Denomination requirements: Distinction between wholesale and retail does not apply, which allows securities to be issued in denominations lower than €100K but under the wholesale regime  Lower disclosure requirements: Offers full listed status but with lower levels

• f disclosure and continuing obligations than what would be required on EU-

Regulated Main Market  Liquidity: Offers a number of secondary market order-book solutions while providing access to London’s deep pool of international eurobond liquidity  Cost saving: Offers cost savings as London is the only major European listing venue with no annual fees to debt issuers

Professional Securities Market

45

UKLA Listing Requirements Checklist

LR 2 Required by LR17.2.1 Rule Description 2.2.1 (1) Applicant Duly incorporated The applicant must be validly established according to the relevant laws of its place 2.2.1 (2) Conformity with constitution The applicant must be operating in conformity with its constitution 2.2.2 (1) Conforms with law of place of constitution Securities must conform with the law of the applicant’s place 2.2.2 (2) Duly authorised Securities must be authorised according to the applicant’s constitution 2.2.2 (3) Statutory and other consents Securities must have necessary statutory or other consent 2.2.3 Admitted on Recognised Investment Exchange (RIE) Securities must be admitted to trading on a RIE market for listed securities 2.2.4 (1) Freely transferable The listed securities must be freely transferable 2.2.7 (1) Minimum market capitalisation The expected aggregate amount value of the securities must be at least £ 200,000 2.2.9 (1) Whole class to be listed If no securities of that class are already listed, the new securities class must relate to all securities of that class issued or proposed to be issued 2.2.10 (2)(a) Prospectus approved by FCA and published A prospectus must be approved by the FCA 2.2.10 (2)(b) Other EEA is Home Member State for the securities The relevant competent authority must supply the FCA with a certificate of approval, a copy of the prospectus as approved and a translation of the summary of the prospectus. 2.2.11 (2) Listing Particulars approved Listing particulars for the securities must have been approved by the FCA 2.2.12 (1) Convertible into listed securities Convertible securities may be admitted to listing only if the securities into which they are convertible are listed securities 2.2.12 (2) Convertible into recognised market securities Convertible securities may be admitted to listing only if the securities into which they are convertible are securities listed on a regulated, regularly operating, recognised open market 46

Ongoing Obligations of Debt Issuers

London Stock Exchange’s Regulated Market (Main Market) – EEA Regulated The Professional Securities (PSM) (Unregulated Market) – Exchange Regulated Relevant legislation and rules Disclosure and Transparency Rules (DTR) Listing Rules (LR) Disclosure and Transparency Rules (DTR) Listing Rules (LR) Accounts Wholesale  Issuers with debt securities in denominations of EUR100,000 (or equivalent) and above do not have to comply with the periodic financial requirements set

• ut in the Transparency Directive (implemented by DTR 4).

 However, under LR 17.3.4, annual report and accounts must be approved and published within six months of the year end, and must be independently audited and prepared in accordance with the issuer’s national accounting standards or IAS.  No requirement to produce half-yearly reports. Retail  Annual reports must be prepared and published within four months of the year end and to be publicly available for at least five years (DTR 4.1.3 and 4.1.4).  Half-yearly reports must be prepared and published within two months of the period to which it relates and to be publicly available for at least five years (DTR 4.2.2).  The PSM does not distinguish between wholesale and retail issuers.  LR 17.3.4 requires Issuers to publish their annual report and accounts. These must be approved and published within six months of the year end, and must be independently audited and prepared in accordance with the issuer’s national accounting standards or IAS.  No requirement to produce half-yearly reports. Inside Information  If there is any inside information that directly concerns the issuer, the issuer must disclose such information as soon as possible through a Regulated Information Service (RIS) to the market (DTR 2.2).  The issuer, and those acting for it must prepare and keep up-to-date lists of individuals working for them with access to inside information. The insider list must name each insider, state the reasons for the insider’s inclusion on the list, and include the date of creation and update the list (DTR 2.8).  Issuers are required to comply with DTR 2, which details with disclosure and control of information by issuers, in the same way as an issuer with securities admitted to trading on a Regulated Market (LR 17.3.9).  If there is any inside information that directly concerns the issuer, the issuer must disclose such information as soon as possible through a RIS to the market (DTR 2.2)  The issuer, and those acting for it must prepare and keep up-to-date lists of individuals working for them with access to inside information. The insider list must name each insider, state the reasons for the insider’s inclusion on the list, and include the date of creation and update the list (DTR 2.8).

47

Ongoing Obligations of Debt Issuers (cont’d)

London Stock Exchange’s Regulated Market (Main Market) – EEA Regulated The Professional Securities (PSM) (Unregulated Market) – Exchange Regulated Dissemination

• f Information

 The issuer is required to comply with DTR 6.3, which dictates how information should be disseminated to the market.  Information required to be disclosed under the DTRs must fall within the definition of “regulated information”.  Regulated information must be disseminated to as wide a public as possible and simultaneously in the Home Member State and other EEA states.  In effect, this rule obliges an issuer to make use of a RIS and adhere to other minimum requirements when disclosing, for example, inside information.  An annual report is not required to be communicated to the media in full unedited text unless it is the type that would be required to be disseminated in half-yearly financial report.  Under LR 17.2.9B, the issuer is required to comply with DTR 6.3, which dictates how much information should be disseminated to the market.  Information required to be disclosured under the DTRs must fall within the definition of “regulated information”.  Regulated Information must be disseminated to as wide a public as possible and simultaneously in the Home Member State and other EEA states.  In effect, this rule obliges an issuer to make use of a RIS and adhere to other minimum requirements when disclosing, for example, inside information. Other relevant continuing

• bligations

 Ensure equal treatment for all holders of the debt securities ranking pari passu in respect of all rights attaching to the debt securities (DTR 6.1.3).  Make public without delay any change in the rights of holders of the debt securities including changes in the terms and conditions of the debt securities which could indirectly affect those rights, resulting in particular from a change in loan terms or in interest rates (DTR 6.1.10).  Publish notices/distribute circulars concerning bondholder meetings, payment

• f interest, exercise of conversion, exchange, subscription or cancellation

rights and repayment (DTR 6.1.14).  Make public without delay any new loan issues and in particular of any guarantee or security in respect thereof (DTR 6.1.11).  Ensure that all the necessary facilities and information are available publicly to enable holders of the debt securities to exercise their rights (DTR 6.1.4).  Where the issuer proposes to amend its instrument of incorporation or statutes, it shall provide the draft amendment to the FSA. Such submission shall be effected without delay and must, at the latest, be provided on the date

• f the general meeting called on to vote on, or be informed of, the amendment

(DTR 6.1.2).  All holders of debt securities must be given equal treatment in respect of rights.  Any changes to the rights must be disclosed to the public without delay.

48

Appendix (data sets)

49

Active Masala Bonds

ISIN Issuer Name Coupon (%) Currency Amount Raised Issue Date Maturity Date

XS1486517367 Housing Development Finance Corporation Ltd 7 INR 15,000,000,000 09/09/2016 01/09/2020 XS1487470244 Province of British Columbia Canada 6.6 INR 5,000,000,000 09/09/2016 01/09/2020 XS1467374473 National Thermal Power Corporation 7.375 INR 20,000,000,000 10/08/2016 10/08/2021 XS1452352609 Housing Development Finance Corporation Ltd 7.875 INR 30,000,000,000 21/07/2016 21/08/2019 US45950VHT61 International Finance Corp 7.1 INR 2,000,000,000 21/03/2016 21/03/2031 XS1374467238 European Bank for Reconstruction & Development 6.4 INR 5,000,000,000 04/03/2016 04/03/2019 US45950VGQ32 International Finance Corp 6.45 INR 3,150,000,000 10/08/2015 10/08/2020 US45950VGD29 International Finance Corp 6.45 INR 18,000,000,000 30/04/2015 30/10/2018 XS1172671130 European Bank for Reconstruction & Development 5.1 INR 3,111,000,000 02/02/2015 02/02/2017 US45950VEM46 International Finance Corp 6.3 INR 10,000,000,000 17/11/2014 25/11/2024 XS1127911672 European Bank for Reconstruction & Development 5.625 INR 5,500,000,000 28/10/2014 15/03/2017 XS1111087224 European Bank for Reconstruction & Development 5.75 INR 3,000,000,000 19/09/2014 19/03/2018 XS1103713654 Inter-American Development Bank 6 INR 8,500,000,000 05/09/2014 05/09/2017 XS0299574953 Inter-American Development Bank 8.25 INR 1,500,000,000 15/05/2007 15/05/2017

Masala Bonds on London Stock Exchange

50

Matured Masala Bonds

ISIN Issuer Name Coupon (%) Currency Amount Raised Issue Date Maturity Date

XS1246886128 European Bank for Reconstruction & Development 6.3 INR 1,900,000,000 24/06/2015 24/06/2016 XS1105873688 European Bank for Reconstruction & Development 6 INR 25,000,000,000 03/09/2014 03/03/2016 XS1101962618 Inter-American Development Bank 6.1 INR 4,000,000,000 02/09/2014 02/09/2016 XS1076809182 European Bank for Reconstruction & Development 6.2 INR 8,000,000,000 27/06/2014 27/06/2015 XS1029172605 European Bank for Reconstruction & Development 7.65 INR 10,350,000,000 18/02/2014 18/02/2015 XS1016451699 Inter-American Development Bank 7.125 INR 1,000,000,000 24/01/2014 24/07/2015 XS0991636233 European Bank for Reconstruction & Development 8 INR 2,250,000,000 12/11/2013 12/11/2014 XS0935943802 European Bank for Reconstruction & Development 5 INR 12,000,000,000 28/05/2013 28/05/2015 XS0878431492 European Bank for Reconstruction & Development 5.25 INR 8,750,000,000 07/02/2013 07/02/2014 XS0882569568 Inter-American Development Bank 5 INR 2,000,000,000 04/02/2013 24/07/2015 XS0842193475 Inter-American Development Bank 4.75 INR 1,040,000,000 25/10/2012 25/10/2015 XS0632507322 European Bank for Reconstruction & Development 5.25 INR 5,000,000,000 06/06/2011 06/06/2014 XS0616450127 European Bank for Reconstruction & Development 5.5 INR 2,000,000,000 19/04/2011 19/10/2012 XS0587410514 European Bank for Reconstruction & Development 5.25 INR 2,700,000,000 15/02/2011 15/08/2012 XS0589595700 Morgan Stanley 7 INR 70,000,000 11/02/2011 11/02/2014 XS0573957296 Inter-American Development Bank 4.75 INR 17,000,000,000 10/01/2011 10/01/2014 XS0495010562 Inter-American Development Bank 3 INR 2,000,000,000 25/03/2010 25/03/2014 XS0312041782 European Bank for Reconstruction & Development 7 INR 1,000,000,000 30/07/2007 30/07/2012 XS0294623482 Barclays Bank PLC

• INR

2,000,000,000 10/04/2007 17/01/2017

Masala Bonds on London Stock Exchange

51

London Stock Exchange’s Fixed Income Team

Primary Markets Global Head of Fixed Income Pietro Poletto +39 02 7242 6243 Pietro.Poletto@borsaitaliana.it UK Head of Fixed Income Darko Hajdukovic +44 20 7797 3306 dhajdukovic@lseg.com Fixed Income Product Specialist Lillian Georgopoulou +44 20 7797 3482 egeorgopoulou@lseg.com Fixed Income Product Specialist Elena Chimonides +44 20 7797 1509 echimonides@lseg.com Secondary Markets Global Co-Heads of Equity, Funds, Fixed Income Pietro Poletto Brian Schwieger +39 02 7242 6243 +44 20 7797 3860 Pietro.Poletto@borsaitaliana.it BSchwieger@lseg.com

For further information refer to www.lseg.com

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Disclaimer

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