Masala bonds are bonds issued outside India but denominated in

Indian rupee The Indian rupee (symbol: ₹; code: INR) is the official currency of India. The rupee is subdivided into 100 '' paise'' (Hindi plural; singular: ''paisa''). The issuance of the currency is controlled by the Reserve Bank of India. The Reserve ...

s. Masala is a

Hindi Modern Standard Hindi (, ), commonly referred to as Hindi, is the Standard language, standardised variety of the Hindustani language written in the Devanagari script. It is an official language of India, official language of the Government ...

word meaning

spices In the culinary arts, a spice is any seed, fruit, root, Bark (botany), bark, or other plant substance in a form primarily used for flavoring or coloring food. Spices are distinguished from herbs, which are the leaves, flowers, or stems of pl ...

. The term was first used by the

International Finance Corporation The International Finance Corporation (IFC) is an international financial institution headquartered in Washington, D.C. and a member of the World Bank Group that offers investment, advisory, and asset-management services to encourage private ...

(IFC) to evoke the

culture Culture ( ) is a concept that encompasses the social behavior, institutions, and Social norm, norms found in human societies, as well as the knowledge, beliefs, arts, laws, Social norm, customs, capabilities, Attitude (psychology), attitudes ...

and

cuisine of India Indian cuisine consists of a variety of regional and traditional cuisines native to the Indian subcontinent. Given the diversity in soil, climate, culture, ethnic groups, and occupations, these cuisines vary substantially and use locally av ...

Tranches of masala bonds issued

*The first Masala bond was issued by the

World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...

-backed IFC in November 2014 when it raised

₹ The Indian rupee sign ⟨₹⟩ is the currency symbol for the Indian rupee (ISO 4217: INR), the official currency of India. Designed by D. Udaya Kumar, it was presented to the public by the Government of India on 15 July 2010, following its ...

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 An address is a collection of information, presented in a mostly fixed format, used to give the location of a building, apartment, or other structure or a plot of land, generally using border, political boundaries and street names as references, ...

climate change in India India was ranked seventh among the list of countries most affected by climate change in 2019. India emits about 3 gigatonnes (Gigatonne, Gt) Carbon dioxide equivalent, CO2eq of greenhouse gases each year; about two and a half tons per person, whi ...

. *In July 2016 HDFC raised ₹30 billion from Masala bonds and thereby became the first Indian company to issue masala bonds. *In August 2016, NTPC, a

public sector undertaking Public Sector Undertakings (PSU) in India are State-owned enterprise, government-owned entities in which at least 51% of stake is under the ownership of the Government of India or State governments of India, state governments. These types of f ...

, issued the first corporate green masala bonds worth ₹20 billion.

Sources

{{reflist Bonds in foreign currencies Rupee Investment in India

Tranches of masala bonds issued

See also

Sources