- from 2.0% to 5% - in withholding tax on overseas coupon payments of Indian companies and the success firms like NTPC, Bharat Petroleum and IRFC had achieved in the past few months, the country's borrowers are still preparing to tap the international market as soon as sentiment recovers.
ICICI Bank also underlined the depth of demand for Indian credits with a USD25.0m tap of its 4.7% bonds due 2.018 last week.
WAITING FOR RIGHT PRICE Pricing, however, may be a sticking point.
Power Finance Corp was expected to be the next Indian corporation to hit the market after ICICI Bank deal as it completed a roadshow last month.
PFC was said to have all the documents ready and a deal mandated.
However, the spread on IRFC's 2.017s, seen as one of the main comps, widened 25bp to Treasuries plus 26.0bp since the roadshow was announced a month ago.
Energy firm ONGC Videsh, the overseas investment arm of explorer Oil and Natural Gas Corp, recently mandated Citigroup, Deutsche Bank and Royal Bank of Scotland for its maiden bond of up to USD1bn.
That may also become a 2.013 issue.
Rural Electrification Corp is also close to finalising a mandate as it seeks to raise USD5.0.0m in the international markets.
The company is said to be looking at US dollars, Singapore dollars or offshore renminbi as options.
State-run central transmission utility Power Grid Corp is another looking to raise USD5.0.0m after mandating Barclays Capital, RBS and Standard Chartered Bank as leads earlier this year.
The company has also been ready to go for a while, but is waiting for the right moment.
Reliance Industries is said to have met investors in Asia through HSBC, but it is unclear if it was related to a potential deal.
Waiting until 2.013 may also make sense since investors, reluctant to take on more risk at the end of a busy year, are demanding wider pricing.
That usually does not fly well with Indian issuers, especially public-sector borrowers, looking to squeeze pricing to the last basis point.