What are Masala Bonds?
An Innovative Financial Instrument
A “Masala Bond” is an Indian rupee-denominated bond issued outside India, transferring currency risk from the Indian issuer to the international investor. A “Masala Bonds” specifically earmarks these proceeds for environmentally beneficial projects, aligning with global green bond principles. This unique combination allows Indian entities to tap into a broader, deeper pool of foreign capital without incurring foreign currency liabilities, while attracting ESG-focused investors.
The GMB Advantage: Benefits for Issuers & Investors
A Win-Win for Sustainable Development
- For Indian Issuers: Access to diversified global capital markets, potentially lower borrowing costs, and crucial insulation from foreign exchange risk. This is vital for long-term, capital-intensive green energy projects.
- For International Investors: Exposure to India’s high-growth economy and green assets, potentially higher yields compared to low-yield environments, and the ability to invest in rupee-denominated assets without direct currency risk. Our GMBs offer a clear pathway for genuine ESG integration and verifiable impact.
Our GMB Issuance Process
Streamlined for Efficiency and Transparency
Mumbai GreenBridge Finance manages the entire GMB issuance lifecycle, ensuring adherence to international best practices. Our process includes:
- Project Sourcing & Appraisal: Rigorous selection of eligible green projects.
- Financial Structuring: Tailoring bond terms to market conditions and project needs.
- International Placement: Listing on global exchanges like the London Stock Exchange (LSE) for enhanced liquidity and accessibility.
- Post-Issuance Monitoring & Reporting: Transparent tracking of proceeds and impact.
Financial Profile of Our GMBs
Attractive Returns, Managed Risks
Our Masala Bonds are designed to appeal to institutional investors seeking both financial stability and environmental impact.
- Returns Profile: Competitive market-rate returns, with coupon rates projected to range from 6.0% to 8.5%, influenced by market demand and our strong credit profile.
- Liquidity: High liquidity due to listing on major international exchanges.
- Risk Profile: Regulatory risk is mitigated by adherence to established frameworks. Credit risk is de-risked by our robust structure and potential DFI backing. Currency risk is borne by the investor, inherent to the Masala Bond structure, but can be managed through diversification options.
