India Property Bond Sales Stall as IL&FS Fuels Default Worry
- Builders have $4.9 billion local currency bonds due in 2019
- Reduced funding means may stymie real-estate market recovery
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Indian developer rupee bond sales have slumped to the lowest in almost four years as investors become more cautious about default risks after the shock from non-payments by Infrastructure & Leasing Financial Services Ltd.
With just two deals in October, issuance dropped to 3.9 billion rupees ($54 million), the least since November 2014. That was down from 18.9 billion rupees the previous month, according to Bloomberg data. No new bonds have priced this month. Dwindling sales may make it harder for developers to repay $4.9 billion of debt that comes due in 2019.