Masala bonds explained

Masala bonds are bonds issued outside India but denominated in Indian rupees. Masala is a Hindi word meaning spices.^[1] The term was first used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India.

Tranches of masala bonds issued

• The first Masala bond was issued by the World Bank-backed IFC in November 2014 when it raised ₹10 billion (10,00 crore) in bonds to fund infrastructure projects in India.
• In August 2015, the IFC, 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

• Foreign currency denominated bond
• Eurobond
• Dim sum bond
• Samurai bond
• Uridashi bonds

Notes and References

1. Web site: V . NARAYANAN . 2020-10-07 . Masala bonds gain currency after a pause . 2022-09-14 . www.thehindubusinessline.com . en.
2. News: HDFC raises Rs 3,000 cr via India's first masala bonds. Business Standard India. 15 July 2016. Roy. Anup.
3. News: NTPC raises Rs 2,000 crore via green masala bonds. The Economic Times. Das. Saikat.