Media reports indicate that Indian companies raised funds through bond issue almost three times more in Jan-Mar 2013 from the previous quarter.
Data from an international media shows that Indian companies sold $6.3 billion of bonds abroad during Jan-Mar 2013, almost triple that of the previous quarter.
Companies are said to be raising funds from abroad as it is cheaper compared to domestic sources of funds.
According to HSBC Holdings Plc indices, the average dollar yields for local companies fell 46 bps this year and reached as low as 3.81 per cent on March 18.
Recently, Union Bank of India raised $350 million through issue of dollar-denominated bonds, of 5.5 years maturity. These were raised at five-year US treasury plus 300 basis points (bps). The bank raised the funds in order to finance its international operations. According to D Sarkar, Chairman and Managing Director of the bank, there is high demand from foreign borrowers, specially in West Asia.
Tata Communications made an addition of Singapore$150 mn to its previous issue of S$250 mn last month.
These bonds are priced at 3.766 per cent yield-to-maturity and they are due in 2016. The total book size was for S$360 mn, with 56 investors.