India Inc Reduced Overseas Bond Issues on Local Liquidity, Re Fall

Indian corporates reduced overseas bond issuances in FY26, favoring local funding due to geopolitical risks, currency volatility, and attractive domestic borrowing conditions. The rupee’s significant depreciation and RBI’s relaxed ECB norms influenced this shift. Offshore borrowing remains selective, with companies exploring alternative markets amid global uncertainties. “Offshore borrowing has come down largely due to geopolitical uncertainty and volatility,” said Utsav Johri, partner, JSA Advocates & Solicitors. “While the recent relaxations in ECB guidelines make the market look promising and could drive a pickup later in the year once conditions stabilise, issuers are currently holding back. Hedging costs are elevated and expose borrowers to currency risk, and with ample liquidity available in the domestic market, companies are not keen to tap offshore markets at this stage.” Read more