Masala Bonds: Financial Tailwind For 175 GW Renewal Energy Project

To provide tail winds for anticipated renewal energy 175 GW installations by 2022, India is exploring the global mechanism to raise fund with various innovative tools to raise funds for renewal energy segment in India.

The Masala bonds is one such financial step to raise international funds. The issuances which would be offered by blue chip government companies are expected to help evolve new vistas of funding for the renewable energy space.
The companies that are likely to launch these Masala Bonds are NTPC, Neyveli Lignite Corporation, Power Finance Corporation, Power Trading Corporation and Rural Electrification Corporation. The expected cumulative fund value is anticipated to be $1 billion within the stipulated tenure of three to four months. The Bond maturity tenure is likes to be in the slab of five to seven years and the bonds issued with be in low denomination ranging from $150-250 million, subjected to decisions made by the Boards of the PSU energy companies.