Easy come, easy go

Written by fe Bureau | Mumbai | Updated: Aug 4 2014, 14:52pm hrs
LoansSome borrowings are being used to refinance loans.
Indian companies have, so far in 2014, tapped the overseas bond markets for more than $10 billion most of it in dollars and some in euros, reports fe Bureau in Mumbai. Some borrowings are being used to refinance loans. Total repayments by March 2015 are pegged at $24 billion, of which close to half needs to be repaid by banks and blue-chip corporates. The payments are bunched up towards the end of 2014 and another $6-7 billion can easily be raised since appetite for Indian paper remains strong, say investment bankers. Among blue-chips that have been in the market are ONGC it mopped up $2.2 billion, a large borrowing Tata Steel and ICICI Bank. Both banks and corporates have been able to borrow at spreads that are finer than they were eight months ago. Indeed, spreads on Indian paper have contracted to their lowest levels since 2007, tightening by about 100-150 basis points over the last eight months.