Forex21 hours ago (Aug 14, 2020 01:45AM ET)
(C) Reuters. India Credit Woes Ease Further as Dollar Loan Pipeline Rebounds
(Bloomberg) — Indian companies are lining up the most dollar loans since the pandemic worsened, as stimulus steps boost investor sentiment and help ease a credit crunch.
Borrowers have sought at least $5 billion of dollar facilities since July 1. If they sign them this quarter, it would be the most since the first quarter. The Covid-19 crisis dragged volumes to the lowest since 2009 in the three months through June.
The financing may help companies, which have $12.6 billion of offshore bond and loans maturities next quarter, the most they’ve ever faced until now. While massive challenges remain with the pandemic, creditors are taking solace in government measures including a $277 billion economic stimulus.
Recent examples include borrowing plans of Vedanta (NYSE:VEDL) Resources Ltd. and ONGC Videsh Ltd., the overseas unit of India’s biggest state-run oil explorer.
KKR & Co LP (NYSE:KKR) this week also launched a $206 million secured loan to general syndication to fund a leveraged buyout of a controlling stake in J B Chemicals and Pharmaceuticals Ltd (NS:JBCH) It’s the first India-linked dollar loan in about two months to be marketed to a broader pool of international lenders.
India Credit Woes Ease Further as Dollar Loan Pipeline Rebounds
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