Modi win kickstarts rupee bond sales as borrowing costs decline to year low

Billionaire Kumar Mangalam Birla's Grasim Industries Ltd. and UltraTech Cement Ltd plan to raise a combined Rs 7.5 billion ($108 million) selling five-year bonds

After a dull start to the quarter, rupee bond sales by Indian companies are set to revive as borrowing costs have declined to the lowest in a year following Prime Minister Narendra Modi’s landslide election victory. State-owned NLC India Ltd. priced Rs 14.75 billion of debt Monday -- its first issuance in a decade -- as average yield for 10-year AAA paper fell to 8.31%, the cheapest since last May.

“Yields have come down and corporates waiting to refinance will borrow,” said Sandeep Bagla, associate director at Trust Group in Mumbai. “Issuance will pick up pace as clarity on the