Krishna Merchant is Asia credit correspondent at IFR. She covers credit, mainly corporate bonds in India, Indonesia and the Philippines, and also the offshore rupee market, or Masala, bonds for India. She has been with IFR since May 2016.
India’s shadow banking crisis is spreading to the property sector after the US dollar bonds of Lodha Developers International, one of the country’s largest real estate developers, dropped to an all-time low in the wake of a rating cut and liquidity concerns.
India’s central bank cut rates by a slightly larger than expected 35bp on Wednesday and announced measures to boost the flow of credit to non-banking financial companies.
Indian companies are expected to raise billions of US dollars in the international bond market after the central bank allowed them to refinance rupee debt offshore to alleviate tight credit conditions at home.