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.
Comment
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.
Current Affairs 3rd August, 2016 Current Affairs Round Up Bullet Points, August, 2016 Current Affairs Round Up Bullet Points, July, 2016
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