Fairfax buys nearly $1-billion of Indian bonds ahead of potential IDBI bank deal, sources say

Fairfax India Holding Corp. purchased nearly US$1-billion in Indian government bonds, a move reportedly linked to a potential stake acquisition in IDBI Bank. This transaction was facilitated by India's recent exemption of foreign investors in government bonds from capital gains tax. Fairfax is not a frequent participant in the Indian bond market, and the IDBI Bank stake sale process has faced delays.

• •Fairfax India bought US$1-billion in Indian bonds.
• •Bond purchase precedes potential IDBI Bank stake deal.
• •India exempted foreign bond investors from capital gains tax.