Singh Debt Cap Doubles for International Buyers: India Credit
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India lifted the cap on foreign investment in bonds for the first time in 18 months as Prime Minister Manmohan Singh seeks capital for building roads and power plants in a nation ranked below war-ravaged Ivory Coast and Sri Lanka for the quality of infrastructure.
The limit on government bonds was doubled to $10 billion, the Ministry of Finance said late yesterday. The money can only be used to buy sovereign debt due in more than five years. Singh’s administration also allowed overseas investors to buy $5 billion more obligations with similar maturities sold by infrastructure companies, boosting permitted foreign investment in corporate debentures to $20 billion.