On November 22, the State Bank of India (SBI) listed $ 650 million in green bonds simultaneously on the India International Exchange (India INX) and the Luxembourg Stock Exchange (LuxSE). On the occasion of Global Investor Week, the dual listing matched this year’s theme “Sustainable Finance” as outlined by the regulator, the Authority for International Financial Services Centers (IFSCA).
The international branch of the Bombay Stock Exchange (BSE), India INX, signed a memorandum of understanding with the Luxembourg Stock Exchange on November 19, 2020 for cooperation in the financial services sector. This double listing of green bonds is the first step in this collaboration.
V. Balasubramaniam, MD and CEO of India INX, said: “With this double listing, we have taken the first step towards our association with LuxSE. We will work to establish a green corridor with Luxembourg to allow Indian issuers to automatically qualify for dual listing with LuxSE to attract investors from Europe and the world. India INX has now become the premier bond listing site with over $ 33 billion listings.
Manoj Kumar, Executive Director of IFSCA, said: “Today’s dual listing of SBI bonds is an important step for IFSCA in demonstrating regulatory convergence with major international markets in Luxembourg, which has the largest green bond listings in the world. “
Ashwini Kumar Tewari, Managing Director of SBI, said: “The bank has made sustainability one of its core values. A ‘sustainability and business responsibility policy’ for the bank has already been put in place, SBI was the first public sector bank in India to publish its sustainability report in accordance with the Global Reporting Initiative (GRI) framework .
In 2019, India INX unveiled GSM Green, an exclusive fundraising and trading platform for green, social and sustainable bonds.
India INX, the international arm of BSE, started trading on January 16, 2017. The exchange provides an electronic platform to facilitate the trading, clearing and settlement of major asset classes including securities securities, equity derivatives, precious metals, base metals, energy and bonds. .
The exchange’s average daily turnover for the quarter ended September 2021 is $ 11.67 billion, an increase of over 275% from the corresponding quarter of September 2020, with around 84% share of market among the IFSC exchanges.
The exchange offers a competitive advantage in terms of tax structure, which includes exemption from several taxes such as securities transaction tax, commodity transaction tax, dividend distribution tax, tax on capital gains, GST, among others.
(Edited by : Shoma bhattacharjee)