Debt mobilisation up 22% in first six months of FY15, says Prime Database

Mobilisation of capital through the equity markets may not have picked up in a meaningful way yet, despite a sharp run up in equity markets, but debt issuance through private placement is up 22% in the first half of the FY15. According to Prime Database, the first half of the current fiscal 2014-15 witnessed a mobilisation through corporate bonds on private placement basis of Rs 1,59,477 crore, up 22%. This was mobilised by 181 institutions and corporates.  

The growth in debt issuance is courtesy higher raisings by the financial institutions/banks, said Pranav Haldea, managing director of PRIME. As per PRIME, the highest mobilisation in the first half was made by the all-India financial institutions/ banks at Rs 78,485 crore. This was closely followed by mobilisation by the private sector, which raised Rs 70,031 crore compared to Rs. 51,422 crore in the corresponding period of the previous year. Mobilisation by State Level Undertakings (SLUs) too went up by 32% to Rs 1,502 crore compared to Rs 1,133 crore.

A fall in mobilisation was witnessed by Public Sector Undertakings (PSUs), down by 30% to Rs.8,912 crore compared to Rs.12,634 crore in the corresponding period of the previous year. State Financial Institutions (SFIs) mobilization also went down by 56% to Rs.548 crore compared to Rs.1,251 crore in the corresponding period of the previous year.

Government organisations and financial institutions, put together, mobilised 36% of the total amount, less than the 50% in the corresponding period of the previous year. As per PRIME, among government organisations, all-India financial institutions/banks led with a 81% share, followed by a 15% share by PSUs, 3% by SLUs and 1% share by SFIs.