M&A seen driving India dollar offerings as costs drop

Mumbai

INDIAN dollar-denominated bond sales are set to accelerate in 2017 as mergers and acquisitions (M&A) and the cheapest borrowing costs in more than two years drive issuance. That's a contrast to 2016 when sales of US currency notes by local borrowers fell to a six-year low as higher US interest rates and a slump in the rupee to a record low jolted sentiment.

NN Investment Partners expects sales will rebound as companies seek funds for increased M&A, while Citigroup Inc sees easing rate volatility bolstering issuance.