Tumultuous Year Raises India Inc Dependence on Foreign Banks
- Offshore loan costs at 13-year low, but some ticking up
- Bond market seen less attractive as defaults raised yields
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India’s companies are growing more dependent on banks to raise offshore funds going into 2019 as the bond markets sputter and local-currency funding from domestic banks dries up.
Borrowers that are facing challenges in the credit market are finding solace in dollar-denominated loans, even as non-performing debt at local banks, volatility in the rupee and uncertainty over national elections next year add to pressure on financing costs.