INSUBCONTINENT EXCLUSIVE:
The maturity of the bonds could be 10 years or more, the people said.The government is considering an option to raise $10 billion in one go
from its first overseas bond sale as early as October, according to people familiar with the matter.A sizable issue given a huge appetite in
the market would fetch lower interest rates, the people said, asking not to be identified as the plan is still under discussion
The other option is to go for two tranches, they said.But, the argument against doing multiple rounds as the size would be small to attract
investors, the people said.Finance Minister Nirmala Sitharaman announced the offshore bond sale plan in the annual budget, amid shrinking
options to raise funds to boost spending on infrastructure
In the same spending plan, she sought to lower the nation's fiscal deficit target for the current year to 3.3 per cent of gross domestic
product from 3.4 per cent previously.The government's preferred currencies for the bond sale would be Yen and Euro due to lower rates, the
But it's also keeping dollar as an option because the currency is more liquid, they said, adding the government wouldn't hedge the bond
sale as that would increase its costs.Finance ministry spokesman DS Malik didn't immediately respond to calls.The maturity of the bonds
could be 10 years or more, the people said.Get Breaking news, live coverage, and Latest News from India and around the world on
TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
