Indian corporates have gone on a borrowing spree in international debt markets, a trend that's set to continue owing to the country's improving economic outlook and healthy investor appetite, according to analysts.
Foreign currency bond issuance by non-financial companies reached $11.2 billion for the January-July period, surpassing the $10.2 billion reached in 2013, according to Moody's Investors Services. It's expected to reach a record high of $13-14 billion this year, and could be higher in 2015 if the cost of hedging exchange-rate risk declines, Moody's predicts.
"Clearly public sentiment around India is positive, and it makes sense for companies to take advantage of that to raise capital at a lower cost than what they were able to do earlier," said Manpreet Gill, head of fixed income, currencies and commodities investment strategy at Standard Chartered Bank.
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