India has to pay $23 billion in debt service payments for external commercial borrowings (ECB), foreign currency convertible bonds (FCCBs) and other loans in fiscal 2013. This is coming at a time when the country’s total external debt is some 1.04 times its foreign exchange reserves. A depreciating rupee will add to the burden of firms and the government. As Citigroup Global Markets Inc. points out, the conversion price of FCCBs is well above the current price. Investors will be watching for Reliance Communications Ltd’s FCCB redemptions. The company is already in the market scouting for ECB money. Its success or failure will determine the fate of India’s FCCB market.
Also See | Chart of the day (PDF)
PDF by Yogesh Kumar/Mint