Indian companies, upset with the global economic slowdown and almost three years of high inflation, have been fast turning towards foreign markets to raise funds as high interest rates at home act as dampener for the growth.
On the other hand, foreign banks, which are flushed with liquidity amid loose monetary policies, have also shown interest in lending to Indian companies, which are relatively healthy than their western peers.
Experts said that a highly rated Indian company would prefer to raise money from overseas markets, which are easier to access too, for the simple reason that it costs 9-10 per cent there, including all the costs lke hedging, as compared to the cost of around 12 per cent in the domestic banks.
After Reliance Industries (RIL), State Bank of India (SBI) ICICI Bank, many companies like ONGC Videsh Ltd ( OVL ), Dish TV , Power Grid Corp , Essar Oil and Gulf Oil are planning to hit the global markets for funds. Reports said that these companies may raise around USD 6 billion in next few months overseas.