India in the Capital Markets

Request a PDF

  • Rating fears hit issuance, but more deals expected

    Sagging economic growth and threats of a sovereign rating downgrade plagued Indian borrowers in the first half of the year, resulting in a drop in new issue supply from the country. But with spreads having narrowed, some bankers are now hoping for around $3bn of volume by the end of the year, writes Jun Ebias.

  • Inflation and deficit put rupee market on edge

    Rising inflation and a widening budget deficit are worrying India’s domestic corporate bond market. Unless the government acts quickly and decisively to address these problems, the country may even lose its investment grade rating, writes Jun Ebias.

  • International ambitions versus local restrictions

    Indian corporations are at the forefront of the growth of one of the biggest economies in Asia, but the amount of international bond issuance from the sector remains small, not just compared to the supply from other Asian countries, but also compared to the amount of issuance from Indian banks.

  • India rules, OK?

    Indian banks and companies face a tight set of restrictions when they want to fund offshore, having to deal with a plethora of external commercial borrowing rules. But central bank and government officials have proved they are willing to make big changes to help ease the path of the country’s borrowers to the international market, writes Matthew Thomas.

  • Offshore is on, onshore is off

    Indian issuers have managed to turn to both offshore and onshore investors to sell hybrid bonds, boosting their balance sheets and protecting themselves against potential downgrades. But while the outlook for hybrid issuance in the international market looks good, bankers are not so optimistic about domestic opportunities, reports Matthew Thomas.

  • An ambitious target, but is it possible?

    Indian government divestment plans are always a cause of excitement in the ECM world, because they can contribute so much of the market’s overall deal flow. But the government has yet to achieve anything towards this year’s target and ECM volumes have not been encouraging, writes Louisa Burwood-Taylor.

  • Sebi to drive ECM supply, but demand still uncertain

    India’s ECM market is set for a much-needed boost in supply over the next nine months as companies scramble to increase their free floats ahead of new regulatory rules in June 2013. But although foreign inflows demonstrate interest in the country, successful issuance in the ECM market is no sure thing, writes Louisa Burwood-Taylor.

  • Financing the growth of an Asian titan

    Indian banks’ funding options in their country are prosaic and stable. Most banks are not allowed to issue rupee bonds in senior format — although they can get access to cheap bank capital deals — and they largely rely on their deposit base to fund. But in the international market, they have proven to be frequent and well-regarded issuers.

  • Global appeal, local obstacles

    Vedanta Resources has all the hallmarks of an issuer that could tap the global capital markets on a regular basis: an international business structure, plenty of experience with foreign investors, and a key position in one of the world’s fastest growing economies. But the company is being held back, writes Louisa Burwood-Taylor.

  • Nimble IDBI paves way for others

    With a wide variety of funding exercises under its belt, IDBI Bank has a reputation among investors for a nimble attitude to funding. And as a result of the stability afforded it by government ownership, the bank is also something of an innovator for Indian issuers, writes Louisa Burwood-Taylor.

Publisher: Oliver Hawkins

Telephone: +44(0)20 7779 7304

Commercial director of events: Daniel Elton

Telephone: +44 (0)20 7779 7305

 

Publisher, special projects: Ashley Hofmann

Telephone: +44 (0)20 7779 8740