INSUBCONTINENT EXCLUSIVE:
Overseas bond sales by Indian companies have slumped to the lowest since the global financial crisis a decade ago, illustrating
uncomfortable levels of volatility in global rates and currency markets this year.
Offshore bond issuances, largely denominated in dollars
and sold to international banks and institutions, have fallen to $6.76 billion so far this calendar year
This is the lowest since 2009, when companies had sold $2.14 billion in the immediate aftermath of the biggest financial crisis since the
high at 3.24% on November 8, up 83 basis points since January
The gauge, which acts as the benchmark in the pricing of dollar bonds, has followed an irregular trajectory as the US Fed tightened fund
rates.
Furthermore, wild swings in the rupee raise hedging costs for an Indian issuer
The fall in the values of the Turkish lira and Argentine peso dulled the lure of emerging market assets, and money moved to US
begun on a promising note
In January, Tata Steel raised $1.3 billion by selling dollar-denominated bonds to overseas investors
The company had received bids worth more than $7 billion, ET reported on January 19.
A month later, Yes Bank mopped up $600 million
In March, agro-chemicals company UPL (United Phosphorus Ltd) sold $300 million worth of bonds to overseas investors, seeking to use the
proceeds to refinance high-cost debt.
There have been 21 issuers in 2018 so far, compared with 61 last year
did come off, the benefit is yet to be priced appropriately into emerging markets
of $650 million through its maiden green bond offering for onward lending to green projects.
Rural Electrification Corporation, Power
Finance Corporation, and Exim Bank are the three other public enterprises that raised cash in offshore bond markets this year.
