MCB Capital Markets, an investment banking arm of MCB Group and Zyfin Holdings, an ETF manager, on Monday announced a partnership to launch MCB India Sovereign Bond Exchange Traded Fund, the first Mauritius-based fixed income ETF.
"We have entered into a partnership with Zyfin Holdings to launch the first Mauritius-based fixed income ETF-MCB India Sovereign Bond Exchange Traded Fund, subject to regulatory approvals. The ETF will be listed on the Stock Exchange of Mauritius with Indian sovereign bonds (G-Secs) as underlying asset," a company statement said here.
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.
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.
"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, 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," MCB Capital Markets Chairman Pierre-Guy Noel said.
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."
