Masala bonds - rupee-denominated bonds issued by Indian companies to offshore buyers
Q. What are ‘Masala Bonds’?- Published on 23 Feb 16a. Rupee-denominated bonds issued by RBI to offshore buyers
b. Rupee-denominated bonds issued by Indian companies to offshore buyers
c. Bonds issued as a payment for Indian spices
d. Indian spices (masalas) as a mode of payment for trade
ANSWER: Rupee-denominated bonds issued by Indian companies to offshore buyers
- UK is trying to convince Indian companies to raise capital in the UK through so-called ‘masala’ bonds.
- Masala bonds refer to rupee-denominated bonds issued by Indian companies to offshore buyers.
- They want London to be the first point of call for Indian companies to expand and attract foreign sources of capital.
- It is believed that Indian companies such as Bharti Airtel, HDFC, Yes Bank and Indian Railway Finance Corporation (IRFC) have agreed to raise money in the UK market.
