Freshfields has advised on Housing Development Finance Corporation’s further Masala bond issuances

Freshfields Bruckhaus Deringer LLP (“Freshfields”) has advised on Housing Development Finance Corporation (“HDFC”)’s further Masala bond issuances - the placement of Synthetic INR 5,000,000,000 7.00% Notes due 2020 (“Placement Note”) and public tap issue of Synthetic INR 10,000,000,000 7.00% Notes due 2020 (“Tap Issue”). HDFC is India’s leading housing finance company. Freshfields also advised on HDFC’s first ever corporate Masala bond issuance in July.

Both tranches of Notes will be issued this week and listed on the London Stock Exchange (“LSE”). The firm acted as international transaction counsel on both transactions and as adviser to HSBC as lead manager on the Placement Notes transaction and as adviser to HSBC and Standard Chartered Bank, who together acted as the joint bookrunners and lead managers, on the Tap Issue transaction.

The Canadian Province of British Columbia was the sole investor for the Placement Notes. In order to fund its purchase of the Placement Notes, the Canadian Province of British Columbia will issue its own Masala bonds this week, also to be listed on the LSE, raising INR 5,000,000,000 with a coupon of 6.62%. It will become the world’s first foreign government entity to issue a Masala bond.

The Freshfields team advised on the full spectrum of legal matters on HDFC’s bond issuances and coordinated the listing process of the bonds in London. The London based team was led by Counsel Nick Hayday together with Corporate Partner, Pratap Amin. Associate support was provided by Shivagar Siva.

Commenting on the issuance, Nick Hayday, said,  “We were delighted to work closely with the HDFC treasury and legal team again as well as the underwriters on these innovative and ground breaking Masala bond transactions. We look forward to further supporting Indian corporates and other entities looking to raise capital through the issuance of Masala bonds, which are proving to be a popular product for issuers and investors.”

Pratap Amin, added, “ These further Masala bond issues indicate a continuing enthusiasm among international investors for issuances in this recently established market which can complement the Indian domestic bond market for corporate borrowers. International investors participating in these issuances are showing confidence in the value of the Indian Rupee for the short to medium term”.

Despite the recent challenging market conditions, Freshfields has recently acted on several other high profile capital markets transactions, including advising on Tullow Oil’s sub-investment grade convertible bond, which is the first convertible security issued by a UK company since the Brexit referendum.