Masala bonds
Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. Masala is a Hindi word meaning spices.[1] The term was used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India.[clarification needed] Unlike dollar bonds, where the borrower takes the currency risk, Masala bonds 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 ₹10 billion bonds to fund infrastructure projects in India. Later in August 2015, the International Financial Corporation, for the first time, issued green masala bonds and raised ₹3.15 Billion to be used for private sector investments that address climate change in India.
In July 2016 HDFC raised ₹30 billion from Masala bonds and thereby became the first Indian company to issue masala bonds.[2] In August 2016, NTPC, a public sector undertaking, issued the first corporate green masala bonds worth ₹20 billion.[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.