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.
A spike in rupee yields is sending Indian issuers overseas in search of cheaper funding at a time when global investors are turning cautious on the country.
India’s decision to reduce the minimum share of assets that the Employee’s Provident Fund Organisation (EPFO) must hold in corporate bonds is expected to put further upward pressure on domestic corporate bond yields.
More state-owned Indonesian companies are raising funds from Komodo bonds, or offshore rupiah notes, even as onshore reforms bring down the cost of domestic debt.