With more favourable view on Indian economy and business environment under the Narendra Modi government, the risk premium for Indian papers began to climb down.
Data by Deutsche Bank show that between May and September 2014, India Inc raised $8.4 billion through overseas bonds compared with $2.9 billion in the year-ago period.
Most of these issues happened in dollar denomination.
Some of the key issuances that happened after May are Tata Steel, ICICI Bank and Rolta India.
Since April 30, spreads have shrunk by up to 150 basis points for various maturity tenures.
Spread is the difference between the global bond yields, listed by an Indian firm and the US Treasury of similar maturity tenure.
"The major reason for these increased volumes is the consistent improvement in India macro backdrop/sentiment post the elections, resulting in a massive compression in the spreads/offshore funding levels," said Amit Bordia, head (corporate finance) at Deutsche Bank India.
In the first nine months of calendar year 2014, banks and corporates raised almost $15 billion through international bonds compared to $10.4 billion during the same period in 2013.
Notably, the amount raised in the first nine months of the current calendar year is higher than $13.2 billion raised for the entire calendar year 2013,
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