bond: India Inc mops up record $22 billion via overseas bond sales in 2021 Verve Timesbond: India Inc mops up record $22 billion via overseas bond sales in 2021 Verve Timesbond: India Inc mops up record $22 billion via overseas bond sales in 2021 Verve Times
Impact Investing Forum 2022
London. April 28-29, 2022.
Mumbai: India Inc raised $22 billion in 2021, surpassing the 2019 record of $18.5 million. This was due to easy liquidity, benign global rates, and a greater number of bonds issued for ESG-compliant project. Vedanta’s four-year, $1.2-billion bond was second. Both bonds were issued in February, when rates were still low but global economic activity was picking up.
Subhrajit Roy (BofA’s India head for global capital markets), said that both investment-grade and lower-rated Indian companies took advantage of the low interest rates and easy liquidity. In 2021, $7.87 billion was raised by BofA-led bond issuances. According to Dealogic data, issuances rose eight times to $8.29 Billion in 2021 from $1.37 Billion in 2020. This is due to greater awareness among Indian companies and the large global liquidity that can be used to invest in ESG compliant bonds. The global ESG debt market has become more sophisticated and deeper. India is still a small market, so the potential for India to tap this market is enormous. According to Chetan Joshi (head-debt financing, HSBC India), there has been a rise in ESG bonds. This is because there is both demand for and supply. This broadening of issuers and product bases bodes well for the coming year, as the number of Indian offshore debt issuers continues to grow. The market could be more volatile due to the risk of a virus resurgence or the changing rate trajectory. Verve Times is an automatic aggregater of all media around the world. Each content contains a hyperlink to the primary source. All trademarks belong only to the rightful owners. All materials belong to their authors. If you are the author of the content and don’t want us to publish it, please email us at [email protected]. Within 24 hours, the content will be removed.