India in the Global Marketplace 2016
Modi brought India back from the abyss on the promise of change. It’s now high time for him to deliver. Jonathan Breen reports.
Indian issuers accounted for just a fraction of Asia’s bond market last year. But the potential for growth is vast — particularly in the offshore rupee debt market — with state-owned companies expected to lead the way for Masala issuance from the country. Rashmi Kumar reports.
India’s debt capital markets are evolving rapidly. The country’s issuers have been among the first in the emerging markets to adopt green bonds and this year Masala bonds — Indian rupee denominated bonds issued in offshore capital markets — look set for lift off. The country’s onshore bond market could also be set for a fresh flood of foreign interest as state debt becomes Euroclearable. GlobalCapital brought together some of the leading players in the Indian capital markets to give their views on the state of the market, where they see opportunities and the factors that prevent a larger swathe of Indian borrowers from accessing the international bond markets.
India has emerged as one of the few bright spots in the emerging markets over the past year, with the country benefiting from depressed oil prices and a popular prime minister. But even though the Indian economy is withstanding volatility better than others, offshore bond issuance volumes here disappointed. Rev Hui looks into why this is, and finds out if there is cause for optimism.
Although sceptics argue that the Indian green bond market is driven more by the government than market forces, most market participants believe the asset class is set to take off over the next 12-18 months due to the country’s insatiable demand — and need — for green projects. Narae Kim reports.
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