Masala Bond is a kind of financial instrument through which Indian entities can raise money from overseas Markets in rupee and not in foreign currency. Indian rupee-denominated bonds issued in offshore Capital markets.
Masala bonds are rupee-denominated bonds through which Indian entities can raise money from foreign markets in rupee and not in foreign currency. … The issuance of rupee-denominated bonds transfers risk associated with currency fluctuations to investors and not to the issuers.
As per May 17th 2019 News source, The Kerala Infrastructure Investment Fund Board’s (KIIFB) on Friday celebrated its debut Masala Bond listing on the London Stock Exchange with a special market open ceremony. The KIIFB is the first sub-sovereign entity in India to tap the offshore Rupee international bond market with the $ 312 million equivalent senior secured fixed-rate bond and is aimed at accessing capital from international investors for the southern state’s infrastructure development.
- : Narayanan Swaminathan