Canada’s British Columbia province has become the first foreign government to issue of masala bonds, a rupee-denominated bond.
It had issued Rs 500 crore rupee denominated overseas bonds (masala bond) on the London Stock Exchange (LSE) and successfully raised $75 million (about Rs 500 crore).
British Columbia’s issued masala bond was priced to yield 6.62 % to semi-annually with a three-year tenor in the LSE. By issuing masala bond, it has secured high-quality investor support from across Europe, Asia and America.
- Masala Bonds are rupee-denominated bonds issued to overseas buyers. It is aimed at boosting investments into India’s infrastructure sector.
- British Columbia by issuing the masala bond has well-positioned confidence of investors outlook for India’s infrastructure sector.
- Thus, it signifies major participation of the rupee in the international markets and highlights prosperous and favourable conditions of Indian economy.