London: State-owned energy major NTPC Ltd raised $300 million ( 2,000 crore) with a 7.48% annual yield with the launch of its green masala bond on the London Stock Exchange (LSE) on Thursday.

NTPC’s bond issue was described as the “first Indian quasi-sovereign to issue a masala bond", the proceeds from which will be invested in the renewable energy market as it seeks to add more wind and solar power projects to its portfolio.

“NTPC’s landmark independently certified green masala bond listing, the first masala bond by an Indian quasi-sovereign issuer, represents another historic event for Indian finance," said Nikhil Rathi, chief executive of London Stock Exchange and director of international development at the London Stock Exchange Group.

“We are honoured to have been chosen to support NTPC access rupee-based financing in London’s international capital markets, reinforcing India’s ambitions to generate 175 gw (gigawatt) of renewable energy by 2022," he said.

“London Stock Exchange has in recent weeks hosted landmark Indian issuances by Axis Bank and HDFC and today we are delighted to host the world’s first independently certified green masala bond by NTPC. This cements London’s position as the listing venue of choice for a variety of Asian issuers, from quasi-sovereign to supranational institutions, municipals and private companies," said Rathi.

“We are excited about continuing to build this market with Indian partners and authorities over the long-term, underlying the success of the India-UK financial partnership," he added.

The listing follows the visit of power minister Piyush Goyal to the UK earlier this year to strengthen UK-India collaboration on power and renewable energy.

It also builds on the announcements made by Prime Minister Narendra Modi to list $1 billion equivalent of masala bonds in the UK, made during his visit in November 2015.

Masala bonds are rupee-denominated bonds issued to overseas buyers. As many as 30 offshore Indian rupee bonds have listed in total on the LSE, raising equivalent to approximately $3.5 billion, according to one of the world’s leading stock exchanges.

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