Cos start tapping Masala Bonds as economy restarts, raise Rs 500 cr in Aug

Rs 500 cr may look very small, but the importance becomes clear when it is found that since March, companies had not issued a single Masala bond abroad

As the country unlocks gradually, companies in need of funds are tapping the overseas markets by issuing masala bonds (or rupee-denominated bonds).

In August, there were eight such masala bond issuances, raising Rs 501 crore, showed the data released by the Reserve Bank of India. 

The amount may seem minuscule, but its importance becomes palpable when it is found that companies have not issued a single masala bond in the overseas market since March.

In February, companies, including Mahindra & Mahindra Financial Services (Rs 350 crore), had raised Rs 626 crore. In January, Schneider Electric India raised Rs 4,500 crore.