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Infrastructure (NIIF (maximize economic impact mainly through…

- - - - Offshore bonds
        
        Foreign currency denominated
        
        Rupee Denominated
        
        MASALA bonds
        
        Interest Risk and Exchange rate risk lies on Investor
        
        HDFC and NTPC also issued it
        
        Benifite
        
        Diversification of Bond portfolio
        
        Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk
        
        Difference b/w portfolio investment and direct investment?
        
        lower risk - Exchange rate risks on ECBs is borne by the investor
        
        Lower cost as interest rates are lower in many developed countries (Interest rate arbitrage)
        
        Provide a country larger Investor base to tap
        
        Settlement happens in Dollar
        
        1st time IFC issued in 2014 in London Stock exchangest time
        
        to fund infrastructure project in India
        
        issued to offshore investor
  - - - Used for purchasing or leasing existing production facilities to launch a new production activity.