Contracting spreads and confidence in India have driven up foreign currency bond issuances by local borrowers to nearly $21 billion in 2019 so far, a record high. The last time borrowings were as high was in 2014 when they were about $18 billion.
Foreign investors are buying more Indian paper this year partly because supply last year was limited, creating pent-up demand. Among other factors for the warm reception that Indian credit has received in 2019, Jujhar Singh, global head – high yield & head – financial markets, India, at Standard Chartered, lists a conducive offshore market, strong investor confidence and benign global rates environment. “We did see investors’ willingness to buy across structures, sector and credit across tenors. This further demonstrates India becoming an increasingly important investment destination for global fixed income investors,” he said.
