New Delhi, Sept. 5 -- Masala bonds are vibrant yet powerful, innovative tools that help blend Indian investment opportunities with global capital. First introduced in 2014 through the International Finance Corporation (IFC), these unique bonds are rupee-denominated in nature and issued by Indian entities, permitting them to tap foreign investors. The primary focus remains on side-stepping currency risks that normally come with raising capital abroad.

These bonds are issued outside the country but denominated in Indian rupees rather than the local currency of the country where they are issued. 'Masala' basically is an Indian word that means spices.

The IFC used this word to evoke the country's unique cultural cuisine. 'Masala' here resem...