India to issue $5bn rupee-denominated bonds in 2021 with no foreign investment cap


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India to issue $5bn rupee-denominated bonds in 2021 with no foreign investment cap

India, the fifth-largest economy across the globe by nominal GDP (Gross Domestic Product) which has been witnessing its worst economic downturn in decades with its economic growth falling below a critical 5 per cent level for the first time in last six years, would likely to issue as little as $5 billion worth of internationally-traded rupee denominated bonds as early as by next year to attract more foreign investments, at least two officials close to India’s finance ministry said late on Tuesday, the 4th of February 2020, on condition of anonymity as the sources were not authorized to speak publicly over the issue.

Aside from that, one of the two sources close to Indian Finance Ministry was quoted saying that the Indian Government Narendra Modi, which had recently announced its budget for 2020-21 fiscal year that raised a raft of rancour among the economists and analysts, would likely to list its internationally traded bonds on several tranches, which each of them would have an issuance of as little as $400 million.

Meanwhile, confirming that the bond issuance would be rupee-denominated, another Indian Finance Ministry officer briefed directly over the subject-matter said late on Tuesday (February 4th), “We have spoken to major index operators and we will start pushing these bonds in tranches very early in the first half of the next fiscal year itself. ”