Global interest in Indian government debt, following its inclusion in a JP Morgan index, has sparked demand for a new derivative product called a total return swap (TRS). HSBC and Standard Chartered Bank have both seen significant activity in TRS trading since launching it in the GIFT City. Other foreign banks are seeking licenses to offer the product as well. The Securities and Exchange Board of India has established regulations for offshore derivative instrument providers.
GIFT City has announced plans to construct its first-ever ultra-luxury hotel within the domestic tariff area, inviting bids for the project. The hotel aims to cater to the increasing demand for luxurious accommodations in the city. GIFT City has established itself as a major financial and technology hub, attracting global businesses and professionals. The new hotel is expected to boost the city’s hospitality industry and further enhance its status as an international business and leisure destination.
Prime Minister Narendra Modi will visit Gujarat from January 8-10 to hold bilateral meetings with world leaders, inaugurate the Vibrant Gujarat Global Summit, and interact with prominent business leaders in the Global FinTech Leadership Forum.
Air India has successfully acquired its first A350-900 aircraft through a finance lease transaction with HSBC via the GIFT City. This transaction marks the beginning of Air India’s aircraft leasing business. The first A350-900 is expected to arrive in India by the end of this year, as part of Air India’s ambitious transformation plan. The acquisition was facilitated by Air India’s subsidiary AIFS and is the first financing transaction from its previous order of 470 aircraft.
Saudi Arabia has announced its intention to consider establishing an office of its sovereign wealth fund in GIFT City, India, to facilitate investments. Saudi investment minister, Khalid A. Al Falih, stated that a strong delegation will be sent to GIFT City in the coming weeks to explore this opportunity. The minister also expressed interest in bidirectional investment facilitation between Saudi Arabia and India.
