Indian Companies to raise record money in offshore debt market

Indian companies are set to raise a record amount of money in the offshore debt market as foreign investors look to invest in these bonds, said reports.

In 2021, with bond yields at an all-time low level, Indian companies expect to exceed the previously set record of $21 billion in 2019.

An increase in the bond price has led to low yields resulting in increased fundraising activity in the offshore bond market. So far this year, Tata Motors Ltd, HDFC Bank Ltd, and Axis Bank Ltd were among the top players to raise debt globally.JSW steel received more than 5 times higher bids for its Rs. 100 crores of bond issuance in the overseas market

Receiving more than expected bids reflects foreign investors' positive outlook on Indian companies with strong operating performance.

Foreign investors optimistic approach to bonds of Indian companies augured well for first-time issuers in the offshore debt market.

As per experts, strong creditworthiness accompanied by faith in the growth story of Indian companies are bolstering investor confidence to raise long-term debt of 10 to 20 years.

Another factor driving the Indian bond offerings is the focus on ESG.

Indian companies are taking maximum advantage of the prevailing market conditions and going ahead expect to see more activity in the offshore market.

ESG- related issuances in the dollar market by the Indian companies have raised the Indian US-dollar denominated bond proceeds to almost 40% this year. Experts opine,