Masala bonds: ED tightens noose around ex-Kerala FM Thomas Isaac

Considered a brainchild of the then finance minister, masala bonds have backfired against the Pinarayi Vijayan government

On May 17, 2019, when Chief Minister Pinarayi Vijayan rang the bells at the London Stock Exchange, Kerala was creating history by becoming the first state to tap Masala bonds to raise money for development.

The state-owned Kerala Infrastructure Investment Fund Board (KIIFB) also became the first sub-sovereign entity in India to tap the offshore rupee international bond market. The proceeds of the bonds were used for part-financing infrastructure rebuilding in Kerala, which was hit by floods in 2018. Considered a brainchild of then finance minister Thomas Isaac, it is the Masala bonds that have backfired against the Vijayan government and