Indian firms raise bets on floating rate bonds to meet funding needs

The Reserve Bank of India’s (RBI) easy mo­ney policy and promise of continued accommodation have changed the fundraising strategy of Indian companies.
 
The Indian firms are slowly leaning towards floating rate bonds, instead of issuing plain vanilla fixed rate papers to meet their funding needs.
 
To be sure, floating rate bonds were always in vogue, but their share was barely one per cent of the total bonds issued. However, in calendar year 2020, and 2021 so far, Indian companies have increased the share of these bonds to over 5 per cent.
 
For example, in 2019, the total