Indian USD bonds are US dollar denominated bonds issued by Indian corporates outside of India. Such bonds are issued by Indian companies that need US dollars to fund their operations and/or companies that would like to take advantage of low interest rates globally. As on early February 2020, the Fed Funds Rate was 1.50-1.75%, which is significantly lower than the then Reserve Bank of India's Repo Rate of 5.15%. However, it is important to note that there is a currency risk, borne by the bond issuer, associated with such bonds. This currency risk can be minimized/eliminated if the bond issuer hedges against downside in the INR against the USD.