BANKING AFFAIRS

Detailed explanation-1: -The first Masala bond was issued by the World Bank-backed IFC in November 2014 when it raised 1, 000 crore bond to fund infrastructure projects in India.

Detailed explanation-2: -Masala Bonds were introduced in India in 2014 by International Finance Corporation (IFC). The IFC issued the first masala bonds in India to fund infrastructure projects.

Detailed explanation-3: -All body corporates, real estate investment trusts and infrastructure investment trusts can issue these bonds overseas. These firms have access to a larger investor base. Also, entities like LLPs opt for these bonds to raise debt.

Detailed explanation-4: -The correct answer is Masala bonds. Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. It is a debt instrument issued by an Indian entity in the foreign market to raise money.

Detailed explanation-5: -Masala Bonds are rupee-denominated bonds. It is a debt instrument issued by an Indian entity in foreign markets to raise money, in Indian currency, instead of dollars or local denomination. In 2019, Kerala became the first Indian state to issue Masala Bonds worth Rs. 2, 150 crore on the London Stock Exchange.