India Inc to get bond comfort
Corporate India could get cheaper funds from abroad through bonds following the government's move to increase the limit on FIIs investment in rupee denominated corporate bonds from $6 bn to $15 bn.business Updated: Jan 02, 2009 21:58 IST
Corporate India could get cheaper funds from abroad through bonds following the government's move on Friday to increase the limit on foreign institutional investor (FIIs) investment in rupee denominated corporate bonds from $6 bn to $15 bn. Foreign bonds are an additional source of capital, and not counting currency risks, also come at cheaper rates.
The government also allowed the non banking financial companies (NBFCs), providing funds to infrastructure projects, to access ECB (external commercial borrowing) route and also permitted real estate players to utilise the ECB funding for development of integrated townships.
“These are welcome moves as it gives more options to the corporates to fund their activities,” said Ashvin Parekh, national head, financial services, Ernst & Young.