TNPSC Thervupettagam

Masala Bonds

May 24 , 2019 2040 days 950 0
  • The Kerala Infrastructure Investment Fund Board (KIIFB) has issued Masala Bonds to raise funds from the overseas market.
  • Kerala has become the first Indian state to tap into the market for masala bonds.
  • A Masala Bond is a
    • Rupee-denominated bond
    • Settled in US Dollars
    • Subject to English law.
  • A rupee-denominated bonds indicates that the funds would be raised from overseas market in Indian rupees.
  • Kerala plans to use the money raised from the bonds to rebuild the infrastructure that was devastated by last year’s floods.
  • KIIFB has listed Masala Bond on the London Stock Exchange on 17.05.19 to tap USD 312 million (₹ 2,150 crore).
  • London Stock Exchange claims to be the largest Masala Bond centre globally, with 49 such rupee-denominated bonds listed across its markets.

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