Indian corporates are likely to raise a record USD 20 billion from offshore bond sales next year, having already mopped up USD 18 billion till now in 2014, an RBS official said today.
Last year, non-financial corporates raised USD 15 billion in debt from overseas market.
"Domestic corporate have already raised around USD 18 billion through offshore bonds in transactions numbering 30-35 so far during the current year (CY2014) and this is likely to top USD 20 billion next year.
"Moreover, there are at least one or two such transactions in the pipeline this month," said RBS head for debt capital markets (India & Southeast Asia) Manmohan Singh.
About the domestic credit outlook going forward, he said, "Liquidity will remain as I don't see the underlying rates to go up. Spreads for Indian credits will continue to be attractive. There will be new issuers coming to the market. The companies, which were unable to do so in past due to high L+500 pricing, can look at capital market issuance now."
Overseas debt raising will continue as corporate will continue to pare their domestic debt, he added.
On India's credit outlook, Singh said "If the momentum in the economy continues and oil prices continue to fall, then there could be a rating upgrade. As we speak today on a relative value basis, investors think that we are expensive.
