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Default Shock in India Sees Firms Pulling Most Bonds in Decade

  • Companies scrapped $800 million of bond sales this month
  • Investors seek higher yield on concern IL&FS’s woes may spread
Pedestrians walk past the Bombay Stock Exchange (BSE) building in Mumbai.
Pedestrians walk past the Bombay Stock Exchange (BSE) building in Mumbai.Photographer: Dhiraj Singh/Bloomberg
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North Eastern Electric Power Corp., an Indian state-run power generator, planned to raise 3 billion rupees ($41.3 million) selling bonds. It couldn’t manage 5 percent of that amount, prompting it to scrap the sale on Monday.

Three Indian companies have pulled 58 billion rupees ($800 million) of debt sales this month, the most in at least a decade, according to data compiled by Bloomberg.