India Inc's dollar bond issuance hits 6-quarter low
Indian companies only raised $1.84 billion through dollar bonds in April-June 2024—a big drop from $4.8 billion last quarter and the lowest in a year and a half, per Bloomberg.
Experts, including Soumyajit Niyogi from India Ratings & Research, say this is mostly because credit demand is weak and local interest rates have fallen, making foreign borrowing less attractive.
Firms are turning to cheaper rupee loans
With demand down, many companies are holding off on big spending plans and don't need as much outside funding.
As Soumyajit Niyogi from India Ratings & Research puts it, "The decline in dollar bond issuances is mainly due to slower credit demand and lower domestic rates."
Instead, firms are turning to cheaper rupee loans or even foreign currency loans for flexibility—especially exporters who benefit from borrowing in dollars.
This all points to changing strategies as India's finance landscape keeps shifting.