Facing dollar squeeze, Indian companies rush for 'cheaper' Samurai loans

Swapping funds from yen to rupee was about 10 basis points cheaper than swapping from dollars to rupee

Indian companies lured by Japan’s near-record low-interest rates and easier availability of funds are raising the most yen-denominated loans in more than a decade as dollar lenders turn cautious.

While Samurai loans still make up only a small portion of Indian firms’ total foreign-currency facilities, coming to more than 6 per cent this year, they are growing in importance for borrowers. Power Grid Corp. and Indian Railway Finance Corp. are seeking such debt, adding to $846 million worth of yen syndicated loans raised by domestic companies this year, people familiar with the matter said. That’s the most since the same