That if you're looking at funding a 30 year project, you shouldn't fund it with one year money. So you have a lot of one year money available you. So that's that's a very important aspect. That's where the domestic bond markets today are not really meeting. I mean, in addition to all the other points mentioned, one of the key things that's required is. Whatever is the type of project, you have to fund it with that type of capital, right? You cannot fund infra project with the manufacturing kind of capital, manufacturing project, mainframe kind of capital, right. So to that extent, I think diversification of sources of finance is paramount, very important. And as as an organization we have you know, we've gone on that part about five to six years back and today MBR is we've been able to get one third, one third. 3rd between domestic banks, international banks and the capital markets, primarily international capital markets, it's. You know on, on the availability of onshore capital, I'll just say that one of the things that India can learn from China is you know from an availability of onshore capital, both bank capital and bonds there is, there's there's a lot of capital available in onshore markets as well, right. So therefore then they look at international funding, they look at it either glucose or specialized needs or when there is a cost of capital arbitrage that the onshore markets for whatever reasons. More expensive as compared to international markets. Issuers can tap both, I think. If you can take the example of a very small market like Taiwan today, Taiwan is a market, it's a capital exporter. It is actually because of the taller exports that they do of the semiconductor, they see so many dollars, so much dollars that they are actually investing into a big player in the Indian infrastructure sector because they are funding a lot of these projects. So capital is available, yes, whether onshore capital, capital availability and this is what I'm talking about. They say he is meeting the requirements of the projects and cost of capital is secondary. I think cost of capital moves through cycles. You know, if you have interest rate cycles like you have in the dollar markets today, they'll move through cycles. So that is secondary. That is the availability of capital available, right, Capital is more important.
India Inc’s fundraising via bonds has reached a record ₹9.77 L crore in FY24, marking a significant 15% increase over the previous year.
This achievement underscores the robustness and resilience of our financial markets and the growing confidence of investors.
Let’s continue this upward trajectory! 💪📈 #Finance#Investment#Growth
Source ET
The government's prioritization of high-quality capital expenditure (CapEx) strengthens the very foundation of India's economy. These investments in infrastructure and development pave the way for long-term, sustainable growth. Increased infrastructure spending can lead to improved job creation, better connectivity, and overall economic prosperity
#MutualFunds#Investments#Capex#Moneylancer
Writer at Entrepreneur India || MSME, E-commerce, Telecomm, Auto, Manufacturing || Covering Mid Market Cap Companies || M.A. in Journalism and Mass Communication
Co-Head ECM Syndication at ICICI Securities
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