Deutsche Bank has done well in both the debt and equity capital market spaces. Gunit Chadha, MD & CEO, tells Anita Bhoir and Shobhana Subramanian that quality Indian corporates should be able to access resources since there is a fair amount of appetite.
You have emerged as a top player in the debt syndication space...
I am very proud of how the team has taken us to the leadership position both on the offshore and local side. Especially in the equity capital markets. There are challenges and responsibilities of being on the top of the pyramid of both the debt and equity markets. On the positive side, since you have added value to clients the chances are that a lot of the repeat business would come to you. By default you become the port of call by clients.
In many ways if you are at the edge of the periphery you tend to be short of the best talent, but if you are sitting with market leader, you have the advantage of the best talent working for you.
The downside is that the fire in the belly or the passion to perform would somewhere start diminishing as people start taking the leadership for granted. The downside is that you are judged against a benchmark which is high-water mark.
How do you assess the foreign risk appetite for both Indian debt and equity?
From a global debt capital point of view, there is a huge appetite for Indian paper. Till this point we have seen Indian banks seize this opportunity. DB has been the central bank in this space, leading 13 of the 15 bond issues done last year.
That appetite is very much intact. Hence, we see longer tenure bonds hitting the market. India is not a big supplier of dollar paper; hence, whatever the supply, it is lapped up. Corporate paper is even more attractive as the supply is scare. We just had Reliance and Indian Oil issues. The pipeline is strong and we will see high-yielding corporate paper in the five to 10 year tranche hit the market over 2011.
I believe that, as was demonstrated in the Coal India IPO, if there is going to be an IPO from a quality company with enough liquidity and free float there will be takers. So whether it is Coal India or another IPO from one of the divestment candidates, there will be appetite.
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