With reference to 'IFC Masala Bonds', sometimes seen in the news, which of the statements given below is/are correct? 1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank. 2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector. Select the correct answer using the code given below.

Let's analyze the statements regarding 'IFC Masala Bonds': The International Finance Corporation, which offers these bonds, is an arm of the World Bank: The International Finance Corporation (IFC) is indeed a sister organization of the World Bank and is the largest global development institution focused exclusively on the private sector in developing countries. It issues Masala Bonds to raise capital for investments in India. This statement is correct. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector: Masala Bonds are rupee-denominated bonds issued outside India by Indian entities or multilateral institutions like IFC. The term 'Masala Bonds' refers to bonds denominated in Indian Rupees, but issued in offshore capital markets. The objective is to raise funds from foreign investors in Indian currency, thereby transferring the currency risk from the Indian issuer to the foreign investor. While the IFC issues them for financing in India, other Indian entities (public or private) can also issue Masala Bonds. This statement is correct. Therefore, both statements are correct.