Record Capital raised by Indian Company through Overseas Bonds in 2021

Tags: Economics/Business

• Indian companies has raised a record $22 billion in 2021 through overseas bonds 
• Earlier in 2019 the Indian companies raised $19 billion through overseas bonds.
• The issuance of ESG compliant bonds by the Indian companies was $8.29 billion in 2021 as compared to $ 1.37 billion in 2020.

Overseas bonds 

• It is  a debt creating receipt issued by a company in foreign market to raise capital for its business.
• It is generally issued in the currency of the country.
•  It has a fixed time period(maturity period) and the company which has issued the bonds pays interest on it to the person who has bought the bonds till the maturity period of the bond  
• At the end of the maturity period the company returns the principal amount to the person who has bought the bond.

ESG

•  It stands for Environment, Society and Governance.
• The ESG criteria is used by environmentally and socially conscious investors to judge a company business and its  impact on environment and other ethical issues .
• Companies which score high on these criteria will be able to attract more funding at an easier interest rate .