Tesla Postpones $1 Billion Offering of Bonds

Volatility has destabilised credit markets following Russia's invasion of Ukraine, causing companies around the world to abandon funding transactions at an accelerating pace.

Electric car giant, Tesla has also decided to drop its financial plans. The company has recently postponed a $1 billion offering of bonds backed by leases on its vehicles las week. Almost 80 countries have put at least $25 billion of deals on hold since the start of the war a month ago.

The caution is reaching every corner of the world. Mumbai International Airport Ltd. of India has also delayed a dollar bond deal, SS&C Technologies Holdings Inc. suspended a $1.7 billion buyout loan on Wednesday, and Brazil's Trocafone SA cancelled its IPO.

A senior investment and markets analyst with Hargreaves Lansdown Plc, Susannah Streeter has said, “ There has been a severe jolt to investor confidence since the invasion of Ukraine, as sanctions have been slapped on Russia, and commodity prices roared upwards.”

The war has also left dealers in Europe puzzled about if and when roughly $300 billion of mergers, acquisitions and listings will go ahead. A surge of 74% has also been seen in global equity listings and a 28% fall in global corporate bond issuance so far this year.