MCB Capital Markets to launch the first India Sovereign Bond ETF on the Stock Exchange of Mauritius.
MCB Capital Markets in partnership with Zyfin Holdings Pte. Limited (ZyFin), to launch MCB India Sovereign Bond Exchange Traded Fund, the very first Mauritius-based fixed income ETF. The ETF will be listed on the Stock Exchange of Mauritius with Indian sovereign bonds (G-Secs),subject to regulatory approval. India’s sovereign bond market is one of the world’s largest and most attractive with outstanding issuances in excess of US$ 650 billion presenting an opportunity for investors to further diversify their portfolios.
MCB Capital Markets and Zyfin Holdings Pte. Limited (ZyFin), an ETF manager and advisory firm focused on emerging markets, today announced a partnership to launch, subject to regulatory approval, MCB India Sovereign Bond Exchange Traded Fund, the first Mauritius-based fixed income ETF. The ETF will be listed on the Stock Exchange of Mauritius with Indian sovereign bonds (G-Secs) as underlying asset.
The fund will facilitate investment into the Indian bond market which has traditionally been difficult for foreign investors to access because of minimum investment thresholds, ceilings on foreign holdings and other regulatory hurdles.
India’s sovereign bond market is one of the world’s largest and most attractive with outstanding issuances in excess of US$ 650 billion. India, Asia’s third largest economy, is poised to grow at close to 8.0% per annum in 2016 and 2017 and needs to fund its ambitious national development program. This presents an opportunity for investors to further diversify their portfolios.
MCB Capital Markets will be the sponsor and promoter of the ETF and has appointed ZyFin, which has extensive experience of Indian fixed income and emerging markets ETFs, as Investment Advisor.
Pierre-Guy Noël, Chief Executive of MCB Group and Chairman of MCB Capital Markets, said: “We are pleased to work with ZyFin on creating the MCB India Sovereign Bond ETF, the first India related ETF based and listed in Mauritius. With this launch, MCB Capital Markets continues to innovate by facilitating its clients’ investments into one of the most rapidly growing economies and attractive bond markets in the world.”
Sanjay Sachdev, Executive Chairman of ZyFin, said: “Backed by our expertise in macro-analytics, asset management and structuring innovative ETFs, we are excited to collaborate with MCB Capital Markets and strengthen the ties between the two countries. This partnership also helps us further our goal of providing attractive investment opportunities to global investors in an easy and seamless manner.”
About MCB Capital Markets
MCB Capital Markets (MCBCM) is the investment banking arm of the MCB Group and offers a broad range of services, including corporate finance advisory, investment management, stockbroking, structured solutions and registry. From its base in Mauritius, MCBCM is increasingly active in arranging financing for Africa related projects and in advising clients on their strategic initiatives on the continent. MCB Equity Fund, a subsidiary of MCBCM, is a US$100 million fund that is dedicated to investing in high growth companies in the Indian Ocean region and in Africa.
ZyFin, through its subsidiaries, is an asset management and advisory firm focused on the high growth segment of emerging market ETFs. ZyFin brings both ‘passive’ and intelligent investment products that provide global investors cutting-edge emerging markets debt and equity ETF solutions which are easily accessible and cost-effective. ZyFin recently listed the world’s first Indian fixed income ETF – LAM Sun Global ZyFin India Sovereign Enterprise Bond UCITS ETF – which trades on the London Stock Exchange and Deutsche Börse. ZyFin’s board members include Nina Shapiro (ex-Treasurer of International Finance Corporation), Raman Kumar (founder of Nasdaq-Listed CBay) and lead investor, Neeraj Bhargava (ex-partner of McKinsey & Company and co-founder of NYSE listed WNS).