Masala bonds

Masala bonds are bonds issued outside India but denominated in Indian rupees. Masala is a Hindi word meaning spices. The term was first used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India.

Tranches of masala bonds issued

 * The first Masala bond was issued by the World Bank-backed IFC in November 2014 when it raised ₹10 billion (10,00 crore) in bonds to fund infrastructure projects in India.


 * In August 2015, the IFC, for the first time, issued green masala bonds and raised ₹3.15 billion to be used for private sector investments that address climate change in India.


 * In July 2016 HDFC raised ₹30 billion from Masala bonds and thereby became the first Indian company to issue masala bonds.


 * In August 2016, NTPC, a public sector undertaking, issued the first corporate green masala bonds worth ₹20 billion.