Indian companies have raised $6 billion selling offshore bonds in two weeks, the most in the first fortnight of a year. A total of $6.03 billion was raised during January 1-14, about three times more compared with $2.09 billion a year earlier.
Borrowers including Reliance Industries, State Bank of India, JSW Infrastructure, Shriram Transport Finance and India Clean Energy have also managed to tighten their funding cost by 30-35 basis points from initial projections, after getting bids several times the offer size.
Amrish P Baliga, Managing Director, Deutsche Bank India, said, “Emerging consensus is that India by and large is delinked from most EMs and does constitute a separate asset class. Indian issuers are viewed as quality credit with tightening yields reflecting the same.”
Interest rates continue to be around historic lows. Issuers have taken advantage of investors' renewed allocations for 2022 to tap the markets before the rate hike cycle commences. The strong economic recovery in India, coupled with a stable sovereign rating, has renewed investor interest in Indian paper.
