Rupee-denominated bonds News
Indian firms had borrowed over USD 3.09 billion in November 2017, which also included USD 18.5 million through rupee-denominated bonds (RDBs).
The masala bonds are debt instruments through which designated domestic entities can raise funds by accessing overseas capital markets, while the bond investors hold the currency risk.
RBI's move to allow banks to issue masala bonds will remove obstacles for lenders in accessing additional tier I (AT1) and tier II bond capital and also widen the investors pool, says Fitch.
HDFC Ltd's issue of Rs 3,000 crore rupee-denominated bond in overseas market is credit positive as it will help determine benchmark pricing for potential issuers including PSUs like IRFC, REC and PFC, Moody's Investors Service said Tuesday.
The World Bank`s private-sector financing arm on Wednesday launched USD 2.5 billion, rupee-denominated, bonds in the Indian market to fund infrastructure projects, after raising USD 1 billion in offshore bonds for the sector last year.
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