Debt sales jump to record Rs 3.43 lakh cr in Apr-Dec

According to data collated by Prime Database the money was mobilised by 470 institutions and corporates

Corporate debt mobilisation through the private placement route rose 15 per cent to Rs 3,43,898 crore during the first nine months of the current fiscal -- the highest ever so far.

April-December saw Rs 3,43,898 crore being raised, a jump of 15 per cent over Rs 2,99,725 crore in the same period of the previous fiscal, led primarily by the private sector, Prime Database president Sanjeev Khandelwal said.

According to data collated by Prime Database, which operates the country's only database on debt private placements, the money was mobilised by 470 institutions and corporates.

The agency said the data include only those deals which have a tenor and put/call option of above 365 days.

The highest mobilisation was made by the private sector at Rs 1,93,639 crore as against Rs 1,31,345 crore y-o-y, representing an increase of 47 per cent.

Financial institutions/banks, however, raised 8 per cent less than what they did last year at Rs 1,27,254 crore.

Similarly, mop-up by public sector undertakings also was down by 4 per cent at Rs 22,503 crore, and so was debt raising by state level undertakings, which plunged as much as 91 per cent to just Rs 502 crore.

Mobilisation by state-level financial institutions was nil compared with Rs 883 crore a year ago.

Government companies and financial institutions together mobilised 32 per cent of the total amount, down 43 per cent over the previous year. Out of the total, financial institutions/banks contributed 79 per cent, followed by PSUs at 20 per cent.

The highest mobilisation came from PFC, raising Rs 21,112

crore, followed by LIC Housing at Rs 17,343 crore, HDFC Rs 15,376 crore and REC Rs 12,931 crore.

The financial services sector continues to dominate the market, collectively raising Rs 2,23,647 crore, or 65 per cent of the total, followed by power with a 9 per cent share at Rs 32,086 crore.

According to the agency, the highest full-year mobilisation through debt private placement so far was in 2014-15 when corporates lapped up Rs 4,65,643 crore followed by Rs 3,52,759 crore in 2012-13 and Rs 2,87,893 crore in 2013-14.