CURRENT AFFAIRS

Detailed explanation-1: -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-2: -Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. Masala is a Hindi (one of the languages spoken in India) word and it means spices. The term was used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India.

Detailed explanation-3: -Masala bonds are rupee-denominated securities that Indian companies and institutions issue overseas to borrow money from foreign investors. The first masala bond was issued by the World Bank-backed International Finance Corporation in November 2014.

Detailed explanation-4: -Masala Bonds are traded in India International Exchange (INX), London Stock Exchange (LSE), Luxembourg Stock Exchange. Historically, 43 Masala bonds have been issued on the London Stock Exchange.