Indian PSUs to keep tapping dollar debt despite higher costs, says HSBC's Venkatesh
Mint 1 hr ago·30 Sept 2026, 12:30 am
Indian public sector undertakings are increasingly turning to overseas dollar bonds to fund projects, even though borrowing costs have risen after global rate hikes. HSBC's Vinod Venkatesh notes that the RBI's recent measures – such as the foreign currency borrowing window and relaxed external commercial borrowing rules – have made it easier for PSUs to raise dollars.
For investors, the move signals that PSUs may rely more on foreign capital, which could affect their balance sheets and currency exposure. Higher yields mean larger interest expenses, but diversified funding can reduce reliance on domestic markets. Keep an eye on RBI policy tweaks, global interest‑rate trends and the volume of dollar‑denominated issues, as they will shape the cost and availability of this financing.
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- Category: Corporate Action.
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