IFC’s first masala bond from Japan, Uridashi Masala Bond
Q. The first Masala bonds raised by International Finance Corporation (IFC) for investment in India are from which country?- Published on 07 Mar 16a. Mauritius
b. UK
c. China
d. Japan
ANSWER: Japan
- International Finance Corporation (IFC), a member of the World Bank Group, launched its first Uridashi Masala Bond, mobilizing 300 million rupees (or $4.3 million) directly from Japanese household investors to promote private sector development in India.
- The three-year bond builds on IFC’s pioneering Masala bond program, which has raised the equivalent of $1.7 billion from international investors for investment in India.
- Masala bonds are rupee-denominated instruments sold only to offshore investors, while Uridashi bonds are sold to Japanese household investors.
- Proceeds from IFC’s Uridashi Masala bonds will be used to support private sector investment in India.
- J.P Morgan is the sole arranger of the bonds. Daisen Hinomaru Securities Co. Ltd is the distributor of the bonds.
- India is IFC’s largest client country. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, and expanding access to high-quality and affordable healthcare.
