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.

1. Statement 1 is correct. The International Finance Corporation (IFC) is indeed a member of the World Bank Group. It is the largest global development institution focused exclusively on the private sector in developing countries and functions as the private sector arm of the World Bank Group. 2. Statement 2 is correct. 'Masala Bonds' are bonds issued outside India but denominated in Indian Rupees (INR), rather than the local currency of the jurisdiction where they are issued. The IFC pioneered the issuance of these rupee-denominated bonds to raise funds from international investors for infrastructure projects in India. They serve as a source of debt financing for both public and private sector entities in India, allowing them to borrow in rupees from overseas markets, with the currency risk borne by the investors.