The agreement will offer products in the rupee fixed income markets, both primary and secondary, as well as US-dollar denominated Indian debt across the UK, Europe and Asia.
Mihir Kapadia (pictured), CEO of SGI, said that high grade credit companies from the public and private sector would be the main issuers of these bonds. He believes that the yields are relatively higher than comparable products and are therefore worth considering for exposure into the emerging markets.
Ravi Bubna, managing director and CEO of ECL Finance, the non-banking financial services unit of Edelweiss, added: “With the recent changes permitting Indian entities to issue [rupee] denominated bonds, listed and settled offshore, coupled with the increased appetite for Indian debt paper from offshore investors, there is a clear need for a coordinated effort.
“Furthermore this [partnership agreement] will showcase opportunities in the Indian debt space to overseas investors.
Edelweiss is an Indian financial services conglomerate with an asset base of $5bn and Sun Global is a UK-based investment advisor and manager.
Last week, Sun Global listed the first Indian fixed income ETF in London and Frankfurt. SGI believes the product is the first one resulting from an onshore issuer teaming up with an offshore distributor to offer Indian fixed income bonds.