The company exchanged the principal and interest payments from the term loan for EUR payments at an all-in 2.20% fixed interest rate, through a cross currency interest rate swap
. The net proceeds will be used for general corporate purposes such as financing development and property acquisitions.
Nomura opened its primary dealership operation in India in September 2009, allowing it to access and trade India interest rate risk via underwriting and distributing government bonds as well as trading in local currency interest rate swaps
The transaction includes the execution of cross currency interest rate swaps
to convert the funds to A$230 million.
India's fixed income market is arguably the second largest in Asia (after Japan) and this foray affirms Nomura's commitment to be a leading player in the capital markets in Asia ex-Japan," he added.<p>A press release from Nomura said that the entity will permit Nomura to access and trade Indian interest rate risk via underwriting and distributing government bonds as well as trading in local currency interest rate swaps
. The newly launched interest rate futures contract as well as the awaited introduction of a STRIPS market is expected to complete the width of products available to clients.