According to an estimate by RBS India, Indian companies may issue $15-17 billion worth of foreign debt in 2013.
Already, India Inc raised $12.5 billion worth of capital through issue of foreign debt in Jan-Jun 2013. It may be noted that during the entire year of 2012, Indian firms raised $14.5 billion worth of funds through foreign debt.
Analysts feel that Indian companies prefer to raise capital through overseas bond sales because of low interest rates in the US and the unprecedented liquidity in the global financial markets.
RBS India is learnt to have arranged 10 bond issuances worth $986 million during the first half of 2013.
The increase in foreign bond issuance is not limited to Indian companies. The trend has been catching up in other Asian companies as well, reports indicate.
During Jan-Jun 2013, Asian companies, excluding Japan, raised over $110 billion through foreign debt issuance, which in 2012 stood at $190 billion.
The first half of 2013 saw Reliance Industries issuing the continent’s first perpetual bonds worth $ 800 million at 5.8 per cent. The year also saw Exim Bank tapping Australian debt market, raising 250 million Australian dollars.
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