Five-fold increase in dollar bonds in 2019, firms raise $23.6 billion

Experts say even as foreign investors discriminate between higher and lower-rated issuers, the high-yields market has started to take shape overseas

The lack of access to funds for below-top-rated corporates, along with attractive borrowing costs in the offshore market, has driven Indian firms to raise $23.6 billion through dollar bonds in 2019 — a nearly fivefold jump from the previous year. 

An analysis of the data showed that corporates from infrastructure, power, non-banking financial companies (NBFCs), and metal industries issued a slew of such bonds to meet their funding needs in the current year.

“Globally, the rates have been conducive. For borrowers, the all-in cost matters. Due to currency stability, forward premiums are better, leading to lower hedging costs,” said Ajay