Modi govt's infrastructure push fuels bond sales by highway builders

The average yield on top-rated three-year corporate bonds rose to 6.02% on Monday, the highest level in a month.

Prime Minister Narendra Modi’s plan for India to build 25,000 kilometers of highway in the fiscal year starting next month is making the local currency bond market busy.

At least three road builders are set to sell notes in coming days to raise a total of 55.7 billion rupees ($724.9 million), the most from the sector in any month in about two years. Such builders priced the most securities in February in five months. The flurry comes after the government announced the highway plans in its budget at the start of last month.

The fundraising momentum is building. In addition to the