Shallow Bond Market Trips Modi's $1 Trillion India Wish List
- Curbs on insurers, pension funds hampering financing
- S&P sees $251 million/day funding needs through March 2019
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GVK Power & Infrastructure Ltd., an Indian builder of airports and power plants, has about 235 billion rupees ($3.6 billion) of debt outstanding and none of that was raised selling bonds.
For many Indian infrastructure developers like GVK, corporate bonds aren’t an option because they don’t enjoy a top debt rating like Larsen & Toubro Ltd., the nation’s biggest engineering services provider. Local rules bar insurers and pension funds from buying securities ranked below AA, shrinking the pool of funds. What’s worse, individuals, wary of defaults, largely shun such notes.