What is masala bond? Give an example.

Masala Bonds are debt instruments. An example of a Masala bond is the first Masala bond issued by International Finance Corporation (IFC) to fund infrastructure projects in India. National Thermal Power Corporation (NTPC) had raised Rs 2,000 crores from Masala bonds. Masala bonds are issued either by Indian entities, which could be either private entities or Government entities. You can read about the Masala Bonds – Benefits, Features & Significance in the given link.

It is one of the ways of raising investments in local currency from foreign investors. These are rupee-denominated bonds. 

Further readings:

  1. Electoral Bonds – Introduction, Context, Importance & Significance
  2. Types of Bonds – Basics of Bond, General Features and Characteristics

Related Links

Sovereign Gold Bond Scheme- Tenure, Eligibility & Benefits

Participatory Notes (PNs): Know about Foreign Instructional Investors (FIIs)

Negative Yield Bonds: Details and Reasons for Buying

World Investment Report – UNCTAD (United Nations Conference on Trade and Development)

Additional Tier – 1 Bonds (AT-1 Bonds): Overview and Regulations

RBI – Reserve Bank of India [UPSC Indian Economy Notes]

Previous Years Economics Mains Questions for UPSC General Studies Paper – 3

Download Indian Economy Notes For UPSC Examination

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