Business
Trade pact, rupee rally light up offshore debt window
Bankers said several issuers that stayed away from offshore markets amid a sharp decline in the rupee are likely to now tap overseas debt.
As part of the bilateral trade agreement, the US would slash tariffs on Indian goods to 18% from 50%. This has already triggered buying in Indian bonds and a 5–10 basis point spread compression is seen across in names such as Vedanta, PFC and REC.
Indian corporates anticipate a surge in overseas borrowing over the next two quarters, fueled by improved investor sentiment following a US-India trade deal. This agreement, which includes tariff reductions, has already led to buying in Indian bonds and a spread compression.
“There has been visible buying in Indian bonds including Vedanta, PFC and REC,” said a bond investor. “We are seeing spread compression in the range of 5 to 10 basis points. Vedanta, for instance, has tightened by close to 10 basis points. The tone is positive, though exact numbers will become clearer as volumes pick up.”
The announcement of the trade deal late Monday caused the Indian rupee also to surge the most in seven years. A depreciating currency inflates the rupee cost of repayment for companies borrowing overseas.
The Reserve Bank of India (RBI) last year said it plans to ease external commercial borrowing (ECB) rules by rationalising limits, relaxing maturity norms and removing cost caps. This is expected to lower overseas borrowing costs and give Indian corporates greater flexibility to tap foreign capital as spreads compress further.
India’s ECB volumes has been climbing over the past few years. Indian companies had raised a record $61 billion through ECB route in FY25 up from $48 billion raised in FY24.Market buoyancy is likely to benefit issuers with medium-term maturities, including large public sector banks such as State Bank of India (SBI), which have offshore bonds maturing in FY27. Some issuers, including Greenko that had earlier replaced dollar redemptions with rupee borrowings, could find foreign currency debt attractive again.
“If this environment sustains with lower global rates, stronger inflows and regulatory easing, issuers that stayed away from overseas markets may return,” a banker said.
Following the trade deal announcement, government bond yields eased, too, by four basis points. The 10year benchmark yielded 6.72%
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High gas prices continue to squeeze small businesses across the U.S., but cutting one costly habit could help owners save significantly.
New data from Ford Pro, the commercial vehicle division of Ford Motor Company, shows that unnecessary idling — leaving a car running while parked — can cost fleet operators thousands of dollars each year, cutting directly into margins at a time when fuel prices remain high.
According to the U.S. Department of Energy, the average fleet vehicle idles between one and two hours per day, burning up to two gallons of fuel daily per vehicle. With gas prices rising, those costs can add up quickly.
As of Sunday, the national average price for unleaded gas stood at $4.04, up from $3.88 just a month ago, according to AAA.
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Ford Motor Co. F-150 pickup trucks are displayed at a car dealership in Orland Park, Illinois, on Sept. 27, 2019. (Daniel Acker/Bloomberg via Getty Images / Getty Images)
“You can burn up one to two gallons of gas just doing that,” Matt Krukin, who leads software and digital growth for Ford Pro, told FOX Business. “So if that happens per day… that’s $8 a day that’s idling.”
For businesses operating multiple vehicles, the impact can be substantial. A 20-vehicle fleet idling for two hours a day could waste more than $160 in fuel every day, according to Ford Pro.
Excessive idling is particularly common in North America, where about 29% of fleet vehicles idle unnecessarily, compared to just 10% in Europe, Krukin noted.
To help address the issue, Ford Pro is investing in software and data-driven tools.
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A person pumps gas into a car. (Sean Gallup/Getty Images / Getty Images)
Its newly launched artificial intelligence (AI) assistant allows fleet managers to monitor vehicle behavior in real time, identify inefficiencies and coach drivers to adopt more fuel-efficient habits.
Ford Pro says customers using these tools have seen measurable improvements, including a 52% reduction in idling.
While reducing idling is one of the simplest ways to cut costs, other driving behaviors — such as aggressive acceleration, rapid braking, and speeding — can also increase fuel consumption and wear on vehicles, according to Krukin.
The system can even limit acceleration, while in-cab alerts provide real-time feedback.
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Cars are seen driving on the highway. (Jonas Walzberg/picture alliance via Getty Images / Getty Images)
“It’s like the fleet manager’s right next to them to coach them along the way,” Krukin said.
Users have also seen a 25% drop in speeding, a 16% decrease in hard braking and an 11% reduction in harsh acceleration, according to Ford Pro.
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“We’re not just recommending solutions for the heck of it,” Krukin said. “… At the end of the day, it’s really about bringing it all together, so that these fleets actually get a pleasurable experience with the tools and technology coming together.”
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