India Inc's pace of debt fundraising may slow down over hike in rupee costs

India Inc.’s record pace of debt fundraising may be set to slow as a jump in hedging costs makes those deals more expensive.

Since the start of the year local companies have raised a record $12.9 billion via offshore bonds and $12.3 billion from loans, the highest in three years, according to data compiled by Bloomberg. Falling dollar borrowing costs and improved investor appetite for emerging-market debt have driven the spree.

But the jump in deals has also raised the cost to hedge against moves in exchange rates, diminishing the attractiveness of borrowing overseas for companies. Forward premiums in the local currency