India Offshore Bond Craze Rolls on After Record 2019 Sales
An Indian 2,000 rupee, bottom, and 500 rupee banknotes are arranged for a photograph in Thailand. (Photographer: Brent Lewin/Bloomberg)

India Offshore Bond Craze Rolls on After Record 2019 Sales

(Bloomberg) -- Indian companies have started the year with more debt offerings overseas, after record issuance in 2019 driven by stronger borrowers turning abroad as local credit markets struggled.

The firms sold a record $22 billion of notes overseas in 2019. Yield-hungry global investors have been betting that the kind of higher-rated Indian issuers that have been big sellers could continue to sidestep onshore bond market jitters and a spike in defaults.

“Given the tight funding conditions in the local market and the upcoming maturities and calls in 2020-2021, I think dollar issuance from India will continue to be high this year,” said Bharat Shettigar, head of Asia excluding China corporate credit research at at Standard Chartered in Singapore. Considering that Lunar New Year holidays across Asia are early this year, many issuers will front-load issuance in the first few weeks of the year, he said.

Key Highlights

  • This week, Future Retail Ltd. and Lalitpur Power Generation Co. will start a roadshow for a dollar bonds, while Shriram Transport Finance Co. will hold investor calls
  • Export-Import Bank of India and Manappuram Finance Ltd. may price proposed dollar notes Monday
  • The busy start is in line with a rush among other Asia Pacific borrowers, with more than a dozen looking to price deals or mandating banks for potential offerings

©2020 Bloomberg L.P.

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