India borrowers heading offshore as rupee weakens

Indian borrowers expected to turn to offshore markets as rupee hits new lows.

India borrowers heading offshore as rupee weakens

Bankers are expecting Indian borrowers to show more interest in dollar bonds as onshore liquidity deteriorates, though such deals could be hard to sell given the macro conditions in India.

The government faces a growing budget deficit and the rupee continues to weaken, which has prompted the central bank to tighten liquidity by raising the lending rate to commercial banks by 200bp to 10.25%. This domestic liquidity squeeze is making offshore rates seem more attractive,...

To continue reading, please login or register for free

Click for more on: indian banks | morgan stanley

Print Edition

FinanceAsia Print Edition

CONFERENCES

  • 2nd Compliance Summit Southeast Asia

    17 August 2017  |  Singapore
    The 2017 Compliance Summit Southeast Asia will take an in-depth look at the key compliance considerations today with a focus on regulation and new ...