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9.8. Masala Bonds

Masala bonds are Indian rupee denominated bonds issued in offshore capital markets.

 

♤ These are rupee-denominated bonds issued to offshore investors settled in dollars and, therefore, the currency risk lies with investor and not the issuer, unlike external commercial borrowings – where Indian companies raise money in foreign currency loans. ♤ Examples: ♤ Benefits of Masala Bonds: