Question
Which among the following was the first to issue a
Masala Bond?Solution
Masala Bonds are rupee-denominated borrowings by the Indian entities in the overseas market. Such bonds are regulated by the Reserve Bank of India. The name ‘Masala Bond’ was first given by the International Finance Corporation to represent the Indian culture and cuisine. IFC was the first to issue such bonds in order to raise capital to fund infrastructure projects in India.
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