You are here: Home » Markets » News
Business Standard

Indian borrowers begin 2021 on a high, sell bonds worth $2.1 billion

They are joining borrowers globally that have been rushing to credit markets, after yields crashed following cash-boosting measures

Topics
Bonds | bond market | Dollar

Anurag Joshi | Bloomberg 

Bond
Thanks to strong demand for debt globally as investors put cash to work,

Three Indian borrowers have already sold so far this year, riding a strong wave of global deals and making it the strongest start to a year ever for the country’s issuers.

The firms have priced $2.1 billion of They are joining borrowers globally that have been rushing to credit markets, after yields crashed following cash-boosting measures by authorities to keep economies afloat amid the pandemic.

State Bank of India, regarded as a proxy for the sovereign in the international debt markets, sold $600 million of notes. The state-run lender priced the deal at 140 basis points over U.S. Treasuries, its tightest spread since 2004.

Thanks to strong demand for debt globally as investors put cash to work, Indian companies have been able to tap the market even amid an uneven rebound in Asia’s third-largest economy. Growth contracted 7.5% in the three months through September, after a record 24% slump in the April-June period.

For now, money managers have focused more on the signs that the economy may be putting the worst behind it, following unprecedented stimulus. Dollar-denominated from Indian issuers returned 4.7% last quarter, the most among Asia’s major economies, according to Bloomberg Barclays indexes.

Other issuers from India so far this month are Export-Import Bank of India and Shriram Transport Finance Ltd.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, January 07 2021. 10:26 IST
RECOMMENDED FOR YOU
.