India Inc's debt issuances shrink

High interest rates have taken their toll on India Inc’s plans to raise debt, with trading volume in the debt capital market shrinking 17 per cent in the first six months this year. Indian companies raised $19.2 billion through debt issuances between January and June, compared with $23 billion in the corresponding period last year.

The number of deals declined to 113 during the period from 238 a year ago.

Aggregate debt issuances in the local market touched a three-year low, declining 46 per cent year-on-year to $11.6 billion, while corporate debt issuances narrowed 51 per cent from a year earlier. Axis Bank emerged as the top book runner for domestic bond issuances.

However, the lure of low rates in foreign markets saw a number of Indian companies lining up foreign bond issuances. Corporate bond issuances abroad quadrupled to $2.1 billion in the last six months. Aggregate debt issuances in foreign market were estimated at $7.6 billion during the period. Royal Bank of Scotland led the pack in foreign debt issuances.