Major issuers to tap bond market to raise over Rs 20K cr in next few days

REC is tapping the market on March 17 to raise as much as Rs 6,000 crore through two tranches via bonds maturing in three years and 10 years

Quite a few large issuers, including state-owned REC, NTPC, and Canara Bank, are tapping the debt capital market next week to raise as much as ₹14,000 crore through bonds despite yields on such debt offers trending higher. Additionally, state-owned PFC is tapping the market this week to raise ₹8,000 crore through bonds, said sources.

 

REC is tapping the market on March 17 to raise as much as ₹6,000 crore through two tranches via bonds maturing in 3 years and 10 years. Similarly, NTPC is eyeing to raise ₹4,000 crore through bonds maturing in 15 years. And, Canara Bank is tapping the market to raise ₹4,000 crore through Tier-II bonds maturing in March 2035, according to sources.

 

Meanwhile, PFC will be in the market this week to raise ₹8,000 crore in two tranches through bonds maturing in 3 years and 10 years.

 

“The primary bond market is seeing a surge in issuances, with over ₹25,000 crore expected in the next 7-10 days. SDL auction amounts may also exceed the indicative borrowing calendar, adding to the supply pressure. System liquidity remains tight, with a deficit exceeding ₹1 trillion. While today’s ₹50,000 crore OMO operation may offer temporary relief, advance tax outflows will likely keep conditions strained,” said Venkatakrishnan Srinivasan, founder and managing partner at Rockfort Fincap LLP.

 

“With heavy bond supply, negative liquidity, and unfavorable external factors, we do not expect any meaningful softening in yields before the RBI’s April policy. The market will closely watch policy signals on liquidity management and external macro trends,” he added.

 

Fundraising by corporates in the current financial year (FY25) is expected to surpass the amount raised in FY24. So far in FY25 (up to February), corporates have raised ₹9.6 trillion through bonds. In FY24, they had raised ₹10.19 trillion, the highest amount raised through bonds since FY20.

 

Despite elevated yields, corporates through bonds raised over ₹1 trillion in February after a relatively muted January, due to turmoil in the market, triggered by geopolitical events. In FY25, fundraising through bonds by corporates topped ₹1 trillion in four months — July, September, December, and February. 

Eyeing green 

> REC: ₹6,000 crore via 3-year & 10-year bonds 

> NTPC: ₹4,000 crore via 15-year bonds

> Canara Bank: ₹4,000 crore via Tier-II bonds 

> PFC: ₹8,000 crore via 3-year & 10-year bonds