With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct? 1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank. 2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector. Select the correct answer using the codes given below:

Question

With reference to &lsquo;IFC Masala Bonds&rsquo;, sometimes seen in the news, which of the statements given below is/are correct? 1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank. 2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector. Select the correct answer using the codes given below:

CollectorBabu · Accepted Answer

Correct Answer: Both 1 and 2. ● The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in developing countries. The IFC is a member of the World Bank Group and is headquartered in Washington, D.C. ● Bonds are instruments of debt - typically used by corporates to raise money from investors. ● Masala Bonds are rupee-denominated bonds issued to overseas buyers. The first Masala bond was issued by the World Bank backed International Finance Corporation in November 2014. ● The Reserve Bank of India has issued guidelines allowing Indian companies, non-banking finance companies (HDFC, India Bulls Housing Finance are examples of such companies) and infrastructure investment trusts and real investment trusts (investment vehicles that pool money from various investors and invest in infrastructure and real estate sectors) to issue rupee-denominated bond overseas. https://www.thehindu.com/business/Industry/Masala-bonds-the-flavour-of-the-moment/article10235321.ece

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