India Inc will see an increase in overseas borrowings, which will possibly create a new record, as multiple companies will raise funds for the first time in the upcoming months amid a continued need for durable project financing. “Based on the pipeline, we are likely to cross the $20 billion overseas fundraising record,” Chetan Joshi, managing director and head of debt finance, HSBC India, said.

An expected gain in financing needs for companies that have not raised money overseas yet and demand from private equity and financial sponsors planning investments in local assets are the primary drivers for such fundraising. Joshi also said that there was a continuous need for project finance by the infrastructure sector.
“There is purchase activity in the pipeline by financial sponsors. The demand from Indian companies for fresh funding in sectors like airports, ports, energy, oil and gas and telecom remains stable,” Joshi said.

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“When the second wave hit, the offshore bond markets reacted very maturely; we saw spreads grow a little bit and then start returning. The offshore bond market has continued to form a very supportive backdrop to issuance, which will guide to acceleration of overseas fundraising activity from this quarter,” Joshi added.