India Inc goes slow on local bonds as rates rise, investors turn sceptical

Indian corporates are fast tapping the international bonds market to raise funds for their operational expenses even as they reduce their presence in the rupee bond market. As bonds are costlier for companies and investors are more sceptical than the banks, CFOs say they are looking at other avenues for raising funds in the coming months as dollar bond rates are lower in the range of 100 to 250 basis points.

“For corporates with reasonable credit quality, the Indian bond market has become less of an option from a cost point of view. In addition, conditions imposed in the Indian