Indian dual recourse flies as covered bond hopes build

By Bill Thornhill
22 Oct 2020

Dual recourse structures have become increasingly popular in India after last year’s debut from Kogta Finance. And with the sanctity of bankruptcy remoteness successfully tested in the courts, sentiment towards such structures has improved further. This could help pave the way for a national champion bank to test appetite for Indian covered bonds, which would offer the country's lenders a source of long-term diversified funding that they can't get from deposits.

After Kogta's groundbreaking dual recourse trade in January 2019, a number of similar structures have been issued, or are about to be, by India’s non-bank financial corporations (NBFCs).

The improved outlook is partly driven by investors’ need for the additional security that recourse to the issuer and a ...

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