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'''Masala bonds''' are [[bond (finance)|bond]]s issued outside India but denominated in Indian Rupees, rather than the local currency. Masala is a [[Hindi]] (one of the languages spoken in India) word and it means spices.<ref>{{Cite web |last=V |first=NARAYANAN |date=2020-10-07 |title=Masala bonds gain currency after a pause |url=https://www.thehindubusinessline.com/markets/stock-markets/masala-bonds-gain-currency-after-a-pause/article62195396.ece |access-date=2022-09-14 |website=www.thehindubusinessline.com |language=en}}</ref> The term was used by the [[International Finance Corporation]] (IFC) to evoke the culture and cuisine of India. Unlike dollar bonds, where the borrower takes the currency risk, Masala bond makes the investors bear the risk.{{fact}} The first Masala bond was issued by the [[World Bank]]- backed IFC in November 2014 when it raised 1,000 crore bond to fund infrastructure projects in India. Later in August 2015 International Financial Cooperation for the first time issued green masala bonds and raised Rupees 3.15 Billion to be used for private sector investments that [[Climate change mitigation|address climate change]] in India. |
'''Masala bonds''' are [[bond (finance)|bond]]s issued outside India but denominated in Indian Rupees, rather than the local currency. Masala is a [[Hindi]] (one of the languages spoken in India) word and it means spices.<ref>{{Cite web |last=V |first=NARAYANAN |date=2020-10-07 |title=Masala bonds gain currency after a pause |url=https://www.thehindubusinessline.com/markets/stock-markets/masala-bonds-gain-currency-after-a-pause/article62195396.ece |access-date=2022-09-14 |website=www.thehindubusinessline.com |language=en}}</ref> The term was used by the [[International Finance Corporation]] (IFC) to evoke the culture and cuisine of India. Unlike dollar bonds, where the borrower takes the currency risk, Masala bond makes the investors bear the risk.{{fact|date=December 2022}} The first Masala bond was issued by the [[World Bank]]- backed IFC in November 2014 when it raised 1,000 crore bond to fund infrastructure projects in India. Later in August 2015 International Financial Cooperation for the first time issued green masala bonds and raised Rupees 3.15 Billion to be used for private sector investments that [[Climate change mitigation|address climate change]] in India. |
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In July 2016 [[Housing Development Finance Corporation|HDFC]] raised 3,000 crore rupees from Masala bonds and thereby became the first Indian company to issue masala bonds.<ref>{{Cite news|url=http://www.business-standard.com/article/finance/hdfc-raises-rs-3-000-cr-via-india-s-first-masala-bonds-116071401511_1.html|title=HDFC raises Rs 3,000 cr via India's first masala bonds|newspaper=Business Standard India|date=15 July 2016|last1=Roy|first1=Anup}}</ref> In the month of August 2016 public sector unit [[NTPC Limited|NTPC]] issued first corporate green masala bonds worth 2,000 crore rupees.<ref>{{Cite news|url=http://economictimes.indiatimes.com/markets/bonds/ntpc-raises-rs-2000-crore-via-green-masala-bonds/articleshow/53529926.cms|title=NTPC raises Rs 2,000 crore via green masala bonds|newspaper=The Economic Times|last1=Das|first1=Saikat}}</ref> |
In July 2016 [[Housing Development Finance Corporation|HDFC]] raised 3,000 crore rupees from Masala bonds and thereby became the first Indian company to issue masala bonds.<ref>{{Cite news|url=http://www.business-standard.com/article/finance/hdfc-raises-rs-3-000-cr-via-india-s-first-masala-bonds-116071401511_1.html|title=HDFC raises Rs 3,000 cr via India's first masala bonds|newspaper=Business Standard India|date=15 July 2016|last1=Roy|first1=Anup}}</ref> In the month of August 2016 public sector unit [[NTPC Limited|NTPC]] issued first corporate green masala bonds worth 2,000 crore rupees.<ref>{{Cite news|url=http://economictimes.indiatimes.com/markets/bonds/ntpc-raises-rs-2000-crore-via-green-masala-bonds/articleshow/53529926.cms|title=NTPC raises Rs 2,000 crore via green masala bonds|newspaper=The Economic Times|last1=Das|first1=Saikat}}</ref> |
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Revision as of 06:16, 12 December 2022
Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. Masala is a Hindi (one of the languages spoken in India) word and it means spices.[1] The term was used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India. Unlike dollar bonds, where the borrower takes the currency risk, Masala bond makes the investors bear the risk.[citation needed] The first Masala bond was issued by the World Bank- backed IFC in November 2014 when it raised 1,000 crore bond to fund infrastructure projects in India. Later in August 2015 International Financial Cooperation for the first time issued green masala bonds and raised Rupees 3.15 Billion to be used for private sector investments that address climate change in India.
In July 2016 HDFC raised 3,000 crore rupees from Masala bonds and thereby became the first Indian company to issue masala bonds.[2] In the month of August 2016 public sector unit NTPC issued first corporate green masala bonds worth 2,000 crore rupees.[3]
See also
Sources
- ^ V, NARAYANAN (2020-10-07). "Masala bonds gain currency after a pause". www.thehindubusinessline.com. Retrieved 2022-09-14.
- ^ Roy, Anup (15 July 2016). "HDFC raises Rs 3,000 cr via India's first masala bonds". Business Standard India.
- ^ Das, Saikat. "NTPC raises Rs 2,000 crore via green masala bonds". The Economic Times.