Debt Placements Up 32% In Apr-Dec

Debt private placements have witnessed a rise of 32 per cent in the nine-month period ending December 1999 over the corresponding period the previous year.

According to the Prime Database report, 189 institutions have mobilised an amount of Rs 36,037 crore this fiscal as

compared to Rs 27,578 crore in the corresponding period last year.

Government organisations and developmental financial institutions continued to dominate the market as they mobilised a share of 75 per cent of the total amount raised in private placements. This, however, represents a decline from their 90 per cent share in 1996-97, 75 per cent in 1997-98 and 81 per cent in 1998-99, according to the Prime report.

 

State-level undertakings continued to record a new high in the third quarter and retained their position as top mobilisers this year. According to Prime, from a meagre Rs 311 crore in 1995-96 state undertakings have raised an amount of Rs 11,256 crore in just the first nine months of this fiscal. Most of the funds raised by them have been for the infrastructure sector, mainly power, roads and water resources.

Private sector, too, witnessed a significant increase in mobilisation with 110 corporates raising Rs 9,163 crore in the first nine months as compared to Rs 7,426 crore raised during the last fiscal.