Economics
Default Shock in India Sees Firms Pulling Most Bonds in Decade
- Companies scrapped $800 million of bond sales this month
- Investors seek higher yield on concern IL&FS’s woes may spread
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North Eastern Electric Power Corp., an Indian state-run power generator, planned to raise 3 billion rupees ($41.3 million) selling bonds. It couldn’t manage 5 percent of that amount, prompting it to scrap the sale on Monday.
Three Indian companies have pulled 58 billion rupees ($800 million) of debt sales this month, the most in at least a decade, according to data compiled by Bloomberg.