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.
Reliance Communications’ move to cut US$3.8bn from its US$7bn debt burden has been thrown off-course due to the cancellation of two deals central to the plan, causing a further sharp slide in its offshore bonds.
The Reserve Bank of India has carved out offshore rupee bonds from its corporate bond quota for foreign investors, allowing inflows into onshore bonds to resume and revive the frozen Masala market.
India’s Employees’ Provident Fund Organisation will soon be allowed to broaden its portfolio of corporate bonds to include AA+ rated private-sector debt, deepening the fixed-income market for corporate borrowers.