Indian firms shift to floating-rate debt issuances
Four Indian finance firms plan to raise 85.50 billion rupees via floating-rate bonds this week. This shift helps manage costs as markets expect higher rates.
Four major lenders in India will raise 85.50 billion rupees ($887.74 million) through floating-rate bond sales this week. Expectations for interest rate hikes have pushed yields on conventional fixed-rate bonds higher, prompting the shift. Issuers lower initial costs while investors gain protection against rising inflation.
TATA CAPITAL LTD and HDB FINANCIAL SERVICES LTD are among the firms issuing three-year floating-rate notes. ICICI Home Finance and Mahindra & Mahindra Financial Services also plan to tap the market. These four companies have traditionally relied on fixed-rate bonds for their funding requirements.
