CURRENT AFFAIRS

Detailed explanation-1: -The first Masala bond was issued by the International Finance Corporation (IFC), the investment arm of the World Bank dubbed as Uridashi Masala Bonds in November 2014. The IFC also issued the world’s first Green Masala Bond, denominated in offshore Indian Rupee.

Detailed explanation-2: -International Finance Corporation (IFC) issued the first Masala bond for Indian infrastructure projects in 2014. Also, Kerala became the first Indian state to issue Masala Bonds for Rs. 2, 150 crores on the London Stock Exchange in 2019.

Detailed explanation-3: -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-4: -Which was the first entity in India to make use of Masala Bonds? The state-owned Kerala Infrastructure Investment Fund Board (KIIFB) debuted its ‘masala bond’ issue of ₹ 2, 150 crore on the London Stock Exchange. It is the first sub-sovereign entity in India to tap the offshore rupee international bond market.

Detailed explanation-5: -A rupee-denominated bond is also known as a masala bond. It is a debt instrument issued by an Indian entity in foreign markets in Indian currency. Also, the interest and principal amount are denominated in rupees rather than in dollars or local currency.