They have already clinched more than $2b worth of overseas bonds and loans in 2019.
Bloomberg reports that shadow banks in India are looking outside the country in search for earnings amidst lenders that have been hesitating in extending funds.
The country’s non-banking financial companies (NBFCs) have raised more than $2b of overseas bonds and loans in 2019, a record compared with the same period in the previous years, based on Bloomberg data.
“There is obviously some risk premium being attached to the sector by international lenders, compared to funding rates for similarly-rated corporates,’’ according to Chetan Joshi, head of debt capital markets at the Indian unit of HSBC Holdings. “The USD loan market has shown an ability to support Indian NBFC and housing finance company borrowers.’’
India’s shadow banks have been lending to everyone from poor entrepreneurs getting micro loans for food delivery businesses to property tycoons looking to roll over debt amidst an economic slowdown faced by the country.
Here’s more from Bloomberg.
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