Mumbai: Leading British brokerage RBS Wednesday said Indian corporates will have to arrange USD 1.52 billion funds in foreign exchange in the current calendar year to refinance their debt, which will jump to USD 2.3 billion next year and to USD 9.1 billion in 2016.
"The high number of callable/maturing USD bonds in the next five years point to major re-financing opportunities, which we see at USD 1.52 billion this calendar year, USD 2.3 billion next year and USD 9.1 billion in 2016," RBS India and SE Asia Managing Director and head of debt capital markets Manmohan Singh said here.
However, the fresh funds for refinancing will drop to USD 3.5 billion in 2017 but rise to USD 8.87 billion the next year and again fall to USD 7.55 billion in 2019, he said.
On the outlook for fresh fund-raising by domestic corporates, Singh said given the benign interest rate environment in the West, especially in the EU, fund mopping up will take place in the second half of 2014.
He saw significant refinancing transactions from domestic corporates, which will help reduce the overall cost.
"The current negative interest rate regime by ECB will add impetus to issuance volume across the globe," Singh said.
Domestic corporates have raised a little over USD 10 billion in debt in the first six months of the year, representing 6.9 percent of the entire debt of USD 144 billion in Asia, excluding Japan, he said.
The companies that hit the overseas debt market included Bank of Baroda, Bharti, BPCL, Exim Bank, ICICI Bank, IDBI Bank, IRFC and SBI.
