Bigger India
India dollar bond party just getting started on decade-low costs
Dollar bond issuance from Indian companies looks set to accelerate in the New Year as issuers cash in on bullish investor sentiment and the lowest borrowing costs in a decade
Dollar bond issuance from Indian companies looks set to accelerate in the New Year off a 2017 record as issuers cash in on bullish investor sentiment and the lowest borrowing costs in a decade.
Dollar-denominated bond sales from India soared almost 90% to an all-time high of $15.2 billion in 2017, Bloomberg-compiled data show. Historically low interest rates and credit spreads have allowed some of the nation’s best-rated companies to access markets at very competitive pricing, according to Bank of America Merrill Lynch. Strong investor appetite internationally will spur further gains in 2018, according to Jay Capital Ltd.
“Investors are ready to lap up India paper,” said Asit Bhatia, managing director for global corporate and investment banking at the Indian unit of Bank of America Merrill Lynch in a phone interview. “There is a dearth of good Indian paper in the dollar bond markets.”