Indian firms rush to raise $3 billion in debt as yields plunge ahead of RBI review
TLT•Indian companies plan to raise about 280 billion rupees ($3 billion) through bond sales in the rest of November after yields fell, opening a window for cheaper borrowing ahead of the Reserve Bank of India’s December policy review.
1. Bond sales pick up
Indian companies, including state-run firms and non-bank lenders, are set to raise about 280 billion rupees ($3 billion) through bond sales in the rest of November, five merchant bankers said. Potential issuers include Tata Capital, Aditya Birla Capital, NIIF Infra Finance, NABARD, SIDBI, HUDCO and REC.
2. Yields fall sharply
Companies raised about 350 billion rupees in the first 10 days of November, after fundraising fell to a six-month low of 609 billion rupees in October. AAA-rated benchmark yields have fallen 30 basis points for three-year bonds and 35 basis points for five-year bonds so far this month. Market participants said the window for cheaper borrowing could be brief, with the RBI and Federal Reserve expected to raise rates in December.
