Indian Oil Corp raised S$400m ($325.5m) this week after becoming the first Indian corporation to tap the Singapore dollar bond market. Bankers now hope the success of the deal — and the clear hunger for yield from the city-state’s investor base — will encourage more Asian companies to tap the market.
"There are a significant amount of funds in Singapore dollars, and these funds need to find some assets to invest in," said Krishna Hegde, head of Asia credit research at Barclays in Singapore. "There are not many high spread assets in Singapore."
Indian Oil became the first Indian corporation