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The Growing Scope of Masala Bonds
The Growing Scope of Masala Bonds
The Growing Scope of Masala Bonds
"Masala Bond" the name itself may not be that familiar to you
but since its inception ie, 2014 when IFC raised a 1000 crore
bond to fund projects in India, this name started to capture some
attention.
Prediction:
The rate at which external debt is growing and the growth of
companies and expansion plans is showing a positive outlook
for Rupee Bonds. The recent currency appreciation and events
can cause a drop in external debt but the corporate borrowings
seems to be increasing through masala bonds. The Bonds are
more likely to get invested by overseas players. Better credit
rating for the nation and new policies are expected to get more
fund flow which will boost the market. Unexpected external or
internal events pose risk for the same.
The latest upcoming issues include New Development Banks
500 million US$, HDFC planning to raise 3300 crore and
Shriram Transport also in frontline, the rupee bond market is
pretty alive. It is still too early to conclude but Masala Bonds are
of greater advantage and sustainable instrument.
Thank you.