India can’t find love for its offshore rupee bonds

by confuzzled dude Sun Apr 03, 2016 7:19 pm

MUMBAI—India’s attempt to diversify and deepen its corporate debt market has fallen flat, thanks to lack of demand and bad timing.

Last fall, Prime Minister Narendra Modi indicated to a gathering of 60,000 people at London’s Wembley Stadium that after James Bond, and Brooke Bond tea, a new type of bond was coming to markets: bond, rupee bond.

Looking for ways to help Indian companies take on more debt, invest and create jobs, the government last year allowed them to issue rupee-denominated bonds overseas.

Asia’s third-largest economy is looking to mimic China’s success with its yuan-denominated, “dim-sum” bonds which have raised more than $100 billion for Chinese and other companies since they were launched in 2007, according to data from Dealogic.

However, despite Mr. Modi’s high-profile quips, plans to issue more than $1.5 billion from so-called masala bonds have yet to raise a rupee.

A global pullback from emerging markets, volatility in the rupee currency, and a tax on the issuance of these bonds has made them unattractive to both investors and issuers.

http://www.wsj.com/articles/india-cant-find-love-for-its-offshore-rupee-bonds-1459659632

by Marathadi-Saamiyaar Sun Apr 03, 2016 8:54 pm

in fact bonds from most countrys face the same difficulty. these are tough unpredictable times if you are reading the economic articles. Even Obambi hinted last month that the US economy is in for some difficult times unless banking regulations and exec rewards are reformed.

India can’t find love for its offshore rupee bonds

India can’t find love for its offshore rupee bonds

Re: India can’t find love for its offshore rupee bonds