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.
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