Kerala becomes first Indian state to list Masala Bond in overseas market

On May 17, Kerala became the first sub-sovereign entity in the country to access the international market by listing masala bonds issued through its off-budget mechanism – the Kerala Infrastructure Investment Fund Board (KIIFB). Chief Minister Pinarayi Vijayan has become the debutant head of state in the country to open trading at the London Stock Exchange (LSE) for the day. The resources earned through the bonds would be channelised for funding a clutch of infrastructure development projects cleared by the KIIFB director board. KIIFB is a state agency that mobilises fund for infrastructural projects, over and beyond funds earmarked in the budgets. Masala bonds are popularly known as the Indian Rupee denominated bonds, which can only be issued in a country and subscribed by a resident of such country that is a member of the Financial Action Task Force (FATF) and whose securities market regulator is a member of International Organization of Securities Commission (IOSC).