Arrangers think the improved risk appetite of investors could lead to more than $2 billion being raised by firms.
Though Housing and Urban Development Corporation (Hudco) would begin issuing tax-free bonds on the same date as Indian Railways Finance Corporation (IRFC), it would offer a higher coupon rate. Both the infrastructure finance companies are slated to issue bonds from January 27.
The coupon rates are higher than those offered by IRFC.
The power sector lender is mulling the coupon it would be offered in a falling interest rate scenario.
The depreciating Indian rupee (the currency touched a record low for the second day in a row and closed at 53.22/23 to the dollar on Tuesday) has brought the foreign fund-raising cost for India Inc on a par with the domestic borrowing cost.
Experts say the central bank will refrain from using the CRR as a liquidity tool, as a reduction in the rate will go against its current anti-inflationary stance.
In fact, the companies have already raised $8.9 billion even before this year-end as against $9 billion raised last year, says Dealogic.
RBI had said last week it would continue with the monetary tightening till the inflation trajectory showed a downward trend.
Apart from the cheaper interest cost, the need to make local purchases and payments in the yuan has prompted a few Indian companies with Chinese operations to explore fund-raising opportunities through this route.
In an interview with Malvika Joshi and Somasroy Chakraborty, Madan Menon, RBS' chief executive for Singapore and Southeast Asia and head of global banking and markets in India, shares the bank's plans.
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