Future growth in rupee-denominated debt has galvanised two wealth management houses - one based in India, one in the UK - to forge an investment partnership.

Edelweiss Group, the Indian financial services group, and Sun Global Investments, a UK-based investment house, have reached a partnership agreement to offer full service solutions in Indian rupee-denominated debt - both primary and secondary - as well as dollar-based Indian debt across UK, Europe and Asia.

Sun Global advises institutional investors, family offices, corporate and high net worth individuals on a number of investment strategies in the public markets. Edelweiss oversees around $5 billion of client money and provides services across credit, housing finance, financial markets, wealth and asset management, commodities and life insurance.

The fixed income heads of the respective organisations, Ajay Manglunia in Mumbai and Ajay Marwaha in London, will be in charge of the various activities under the partnership.

Recent moves by the Indian government to allow entities in the country to issue rupee-denominated bonds – listed and settled offshore – is boosting such a market. Such debt is sometimes called “Masala bonds”.

“UK is an emerging global financial hub for rupee bonds and the partnership with Sun Global Investments will enable us to immediately extend our reach as well as relationships across UK, Europe & Asia,” Rashesh Shah, Edelweiss Group chairman, said.

“Furthermore these bonds help Indian issuers manage currency risk while offering international investors convenient access to Indian debt markets. The partnership is a significant value addition to Edelweiss’ leading Indian debt franchise and will help us offer comprehensive end-to-end debt solutions to clients,” he said.

Edelweiss is a prominent player in the domestic debt capital markets with league table rankings of 56 per cent market share in public debt issues and 15 per cent market share in commercial paper in 2015. Sun Global is an active global debt market participant in primary and secondary segments across the UK, Europe and Asia; it was formed in 2008.