Merger Involving $61 Billion of Debt to Help India Credit Market

A recently announced merger of Indian lenders to the power sector is fueling hope that financing will get a boost for energy and other key drivers of the world’s fastest growing major economy.

The Indian government announced that it will combine state-owned Power Finance Corp. and unit REC Ltd. As money managers digest the details, they see two main ways the move is set to put more cash into the titans of the Indian economy as well as large-scale power projects.