State-run Indian Renewable Energy Development Agency withdrew plans to raise as much as $140mn from 10-year bonds because rates were higher than expected.
State-controlled refiner Bharat Petroleum called off a plan to sell at least $70mn worth of five-year securities, stating that the market was choppy and not conducive to fund-raising at the moment.
India’s credit markets could do without the added strains just now. Shock defaults by shadow lender Infrastructure Leasing & Financial Services Ltd. and scrutiny of non-bank financing firms have constrained access to funds, frustrating the government’s efforts to deepen the local debt market.
Average yields on top-rated three-year Indian rupee corporate notes issued by state companies jumped 41 basis points to 8.55%, according to Bloomberg data. That’s the sharpest increase since July 2013.
The tensions could also test appetite for new new dollar bond sales planned by Indian firms that had enjoyed a revival at the start of 2019.
Pakistan said on Wednesday that its fighter jets shot down two Indian aircraft, in a significant escalation of tensions a day after India said its Air Force had bombed a terrorist training camp inside Pakistan.