scorecardresearch
Sunday, November 3, 2024
Support Our Journalism
HomeEconomyIndia plans to raise $10 billion from global bond sale in October

India plans to raise $10 billion from global bond sale in October

Finance Minister Nirmala Sitharaman announced the offshore bond sale plan in the annual budget, at a time when options to raise funds to boost infrastructure spending are shrinking.

Follow Us :
Text Size:

New Delhi: India is considering an option to raise $10 billion in one go from its first overseas bond sale as early as October, according to people familiar with the matter.
A sizable issue given a huge appetite in the market would fetch lower interest rates, the people said, asking not to be identified as the plan is still under discussion. The other option is to go for two tranches, they said.

But, the argument against doing multiple rounds as the size would be small to attract investors, the people said.

Finance Minister Nirmala Sitharaman announced the offshore bond sale plan in the annual budget, amid shrinking options to raise funds to boost spending on infrastructure. In the same spending plan, she sought to lower the nation’s fiscal deficit target for the current year to 3.3% of gross domestic product from 3.4% previously.

The government’s preferred currencies for the bond sale would be Yen and Euro due to lower rates, the people said. But it’s also keeping dollar as an option because the currency is more liquid, they said, adding the government wouldn’t hedge the bond sale as that would increase its costs.

Finance ministry spokesman D.S. Malik didn’t immediately respond to calls.

The maturity of the bonds could be 10 years or more, the people said. – Bloomberg


Also read: Modi govt’s plan to sell foreign bonds has no real benefit, says Raghuram Rajan


Subscribe to our channels on YouTube, Telegram & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular