PSUs rush to raise offshore debt for ongoing projects, retiring older loans

REC to raise $1.1 bn, NTPC and IRFC are raising $1.75 bn; Private sector companies led by Reliance Industries are also tapping international bond markets to raise funds

State-owned REC, NTPC and Indian Railway Finance Corporation (IRFC) are tapping the international markets to raise debt for their ongoing projects and retire old debts.

While NTPC plans to raise $750 million by January-end, REC plans is eyeing around $1.1 billion and IRFC $1 billion, as overseas lenders open their purse for these units, say bankers.

Lower interest rates and good appetite for Indian papers are the main reasons why foreign lenders are pouring money into Indian companies.

Private sector companies are also tapping into international bond markets to raise funds. RIL was the first to raise close to $4 billion by selling