This licence will help BBVA to invest in the on-shore bond market in India
The Indian regulator SEBI (Securities and Exchange Board of India) has granted the certificate of registration, permitting BBVA to access the Indian on-shore bond market.
This marks BBVA's second undertaking in the Indian financial market and is consistent with the bank's strategy of entering emerging markets. India has a robust securities market and the current Indian regulation allows foreign institutional investor (FII) licence holders to invest in the Indian debt market up to $10 billion in government securities, $15 billion in corporate bonds and $25 billion in long term corporate bonds for infrastructure development.
Gonzalo Toraño, managing director and head of BBVA Asia, said, "We are delighted to receive this FII licence from the Indian capital market regulator, the SEBI. This licence will enable us to access this rapidly growing market, and to apply our global expertise to invest in the Indian bond market."
Jeffrey Chu, managing director, said "We have a fully fledged global markets business in Hong Kong, which actively trades most Asian currencies and interest-rate products. This FII license will allow BBVA access to the Indian on-shore bond market for the first time, adding an important market to BBVA's fixed-income securities product offering."
Following the receipt of the FII licence, BBVA intends to increase its exposure to the Indian financial market by bringing in its emerging market experience in risk management and investment expertise BBVA has maintained a representative office in India since 2007 and in December 2010 it signed a MOU with Bank of Baroda to acquire a 51% stake in the bank's credit card business, BOB Cards. Through the joint venture, BOB Cards aims to become a top credit card player issuing more than 5 million cards in the coming years.
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