FTSE TMX and State Bank of India to Launch FTSE SBI India Bond Index


FTSE Russell, the global index provider, today announced the signing of the letter of intent between FTSE TMX Global Debt Capital Markets and State Bank of India, to develop in partnership, a new index, FTSE-SBI India Bond Index, tracking Indian fixed income securities. SBI Mutual Fund, the asset management subsidiary of State Bank of India, India’s largest bank, intends to use the new index as the basis for a new investment product.
Advised by SBI Capital Markets (SBICAP), the letter of intent, signed in the same week of the visit of India Prime Minister, Narendra Modi to the UK, is a first for FTSE Russell and provides it, and parent company London Stock Exchange Group (LSEG), with an important platform in India’s burgeoning domestic financial market.
Smt. Arundhati Bhattacharya, Chairman, State Bank of India said:
“We are delighted to be partnering with London Stock Exchange Group to create the FTSE SBI bond indices for India. Despite investor appetite to access India’s ongoing growth story, at present Indian issuers’ bonds do not have a credible global benchmark for passive investment funds that captures the Indian growth story. The FTSE SBI Indian Bond indices will be a catalyst in the ongoing development and deepening of Indian sovereign and corporate bond markets. It will provide a benchmark for attracting passive funds into Indian bonds as an asset class. Further, it will contribute to bond liquidity and dynamic pricing, as well as enable the evolution of the secondary market for Indian issuers’ bonds.”
Ms. Varsha Purandare, Managing Director & CEO, SBI Capital Markets Limited, India’s leading Investment bank and wholly owned subsidiary of the State Bank of India added:
“Given the strength of the UK and India partnership and London’s status as the pre-eminent financial centre, we are confident that this collaboration between the State Bank of India and London Stock Exchange Group will further contribute to the creation of vibrant and deep bond markets for Indian issuers, providing international capital with a further means to access India’s developing economy.”
Donald Keith, Deputy CEO, FTSE Russell said:
“This is an important step for FTSE Russell and LSEG as a whole, providing us with a strong platform and strategic alliance for building our presence in India. Together with State Bank of India, we will provide the tools to build investment in India, developing deeper pools of international liquidity in the sovereign and corporate bond markets. We are fully committed to supporting State bank of India’s ambitions to develop the Indian fixed income market as well as facilitating closer ties between India and international investors. The letter of intent signed today will accelerate progress towards significant and exciting milestones in this important new chapter in global finance.”


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