CM may attend LSE listing ceremony

Thiruvananthapuram: The invitation extended by London Stock Exchange (LSE) to chief minister Pinarayi Vijayan to participate in the listing ceremony of Kerala Infrastructure Investment Fund Board’s (KIIFB) masala bond is important from a strategic point of view as it opens up a new channel of possibilities for the other states too, according to government sources.
Considered a recognition for the state government, the chief minister is likely to seek the central government’s permission to attend the event scheduled on May 17.

Top government sources said that a state government (or sub-sovereign) entity getting listed in LSE was a unique proposition as only entities like the National Highways Authority of India and other similar firms could tap international markets till date. “This may not be the biggest government firm that is being listed, but a state government entity getting listed is a big achievement. This would also open up possibilities for similar initiatives of the state government,” a top official said, adding that the ongoing debate on the Canadian firm CDPQ, one of the main investors in the masala bond, investing in the controversial SNC-Lavalin was laughable. “A company may have made investments in several other firms and companies. It hardly matters,” sources added. SNC-Lavalin has been facing corruption charges over a contract involving three hydroelectric projects in in the state when Vijayan was the power minister.

According to KIIFB chief executive officer K M Abraham, SNC-Lavalin or none of the other institutions in which CDPQ has invested have any stake in CDPQ as it was a Canadian government body. “Hence it would be illogical to connect any of the many investments of CDPQ as part of its total portfolio of $220 billion US dollars to the masala bond deal of KIIFB,” Abraham said.

KIIFB had recently raised Rs 2,150 crore through its debut international masala bond . At present, projects worth Rs 39,700 crore have been sanctioned under KIIFB. Other than its attempts to borrow funds from outside, what comes normally to KIIFB are the motor vehicle taxes and petroleum cess that amount to almost Rs 1,200 crore every year.

KIIFB has cleared as many as 469 projects till date, of which 229 projects have been tendered, and works of 178 projects have been started. These projects are mainly executed under public works, general education, water resources, health and family welfare, youth and sports affairs and general education departments.